HKEX’s New IPO Settlement Platform, FINI, to Launch in October

Hong Kong Exchanges and Clearing Limited (HKEX) has published a press release to inform of the upcoming launch of FINI, an innovative IPO settlement platform, in October 2023. The platform aims to significantly reduce the time between the pricing of an IPO and the trading of shares from five business days to two business days, thereby streamlining and modernizing IPO settlement workflows and enhancing overall market efficiency. The exact launch date will be announced several weeks ahead of time.
The Exchange recently completed external user testing for FINI and will conduct „market practice sessions and rehearsals in July and August, respectively,“ to simulate end-to-end IPO settlement operations. These activities will serve as final preparations for the full migration to FINI in October. Operating on a cloud-based platform, FINI will facilitate collaboration among different stakeholders involved in an IPO digitally, including IPO sponsors, underwriters, legal advisers, banks, clearing participants, share registrars, and regulators. „The platform will also introduce a new public offer pre-funding model“ to address the issue of funds being locked up in over-subscribed IPOs.
Having obtained the approval of the Securities and Futures Commission (SFC), HKEX has also published updates to various rules, including relevant listing rules, which will come into effect once FINI commences its operations.
Additional information and resources related to FINI can be found on the designated FINI webpage.
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In this context, the SFC also published a press statement on same day to inform of the signing of a second addendum to the Memorandum of Understanding (MoU) „governing listing matters“ between the SFC and HKEX to facilitate the launch of FINI.