Hong Kong’s new IPO settlement platform HKEX FINI to go live on Nov 22, 2023
Hong Kong Exchanges and Clearing Limited (HKEX) today confirmed the launch date for FINI, Hong Kong’s new digitalised IPO settlement platform, on 22 November 2023.
The launch of FINI is a milestone development in the evolution of the city’s capital markets.
The existing IPO settlement platform using CCASS, will no longer be used to initiate IPOs following market close on 21 November. All new listings whose prospectus is published on or after 22 November will be processed on the FINI platform.
FINI is a major new initiative that will significantly shorten the time between the pricing of an IPO and the trading of shares from five business days (T+5) to two business days (T+2). FINI will modernise and digitalise Hong Kong’s IPO settlement process, driving efficiency and supporting the long term development of Hong Kong as a capital raising centre.
HKEX Chief Executive Officer Nicolas Aguzin said:
“FINI is a major development for Hong Kong’s capital markets, bringing greater efficiency and convenience to market participants and issuers, helping them to better manage their risks and costs. The new platform also underpins HKEX’s steadfast commitment to further enhancing the competitiveness and attractiveness of our markets, modernising Hong Kong’s market infrastructure and promoting collaboration. A sincere thanks to all our market participants and all our stakeholders who have supported us in this journey to connect capital with opportunities.”
FINI is a cloud-based platform, which will enable different stakeholders such as IPO sponsors, underwriters, legal advisers, banks, Clearing Participants, share registrars and regulators to collaborate and perform their respective roles in an IPO, digitally. A new public offer pre-funding model is also being introduced in FINI, helping to reduce the scale of locked-up funds in over-subscribed IPOs.
HKEX has worked with Hong Kong’s IPO market participants to complete several rounds of testing, market practice sessions and rehearsals to prepare for the migration to FINI. HKEX will continue to provide support to market participants leading up to 22 November to ensure their full readiness for FINI.
Relevant FINI related Listing Rules, Hong Kong Securities Clearing Company Limited (HKSCC) Rules and HKSCC Operational Procedures will also take effect from the FINI launch date.