HKSI Paper 8 SEHK primary and secondary markets question: minimum number of shares

HKSI Paper 8SEHK primary and secondary markets

A Main Board applicant will list 400 million shares, its only class, at HK$20 each, an expected market value of HK$8 billion. What is the minimum number of shares that must be held by the public at listing?

A 40 million
B 100 million
C 75 million
D 60 million

Show the answer and explanation

Answer: C. 75 million

Rule 8.08(1), as amended from 4 August 2025, sets the minimum public float by the class's expected market value. Over HK$6 billion and up to HK$30 billion, it is the higher of 15% and the percentage giving public shares worth HK$1.5 billion. HK$1.5 billion / HK$8 billion = 18.75%, which beats 15%, so the public must hold 400 million x 18.75% = 75 million shares (worth HK$1.5 billion). 60 million is 15% alone, worth only HK$1.2 billion. 100 million is the 25% that applies only up to HK$6 billion. 40 million is the 10% belonging to the band above HK$30 billion. Source: HKEX Main Board Listing Rules r.8.08(1) (as amended 4 August 2025) (as at October 2026).

Common mistake

Stopping at 15%. In the middle band you must also check the HK$1.5 billion figure and take whichever is higher.

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Original study material mapped to the public HKSI Paper 8 syllabus. Unofficial, not endorsed by HKSI Institute or the SFC. Verify figures and rules against current guidance before relying on them.