When a Hong Kong listed issuer acquires or disposes of a business or asset, the valuation behind the consideration may end up in a public circular, read by the Stock Exchange, the independent financial adviser, shareholders and the market. Valtech Valuation provides independent valuation for HKEX notifiable and connected transactions under Chapters 14 and 14A of the Listing Rules.
When a Listed Issuer Needs an Independent Valuation
Transactions are classified using percentage ratios – assets, consideration, profits, revenue and equity capital. As the ratios rise, a deal moves from a discloseable transaction to a major transaction, a very substantial acquisition or disposal, or a reverse takeover, with heavier disclosure at each step. Connected transactions under Chapter 14A carry additional requirements, including independent shareholder approval in defined cases.
A valuation is not required for every transaction, but it becomes necessary or advisable when:
- the circular must explain the basis of the consideration;
- the Exchange or the IFA expects support for the price;
- the counterparty is a connected person and fairness must be demonstrated; or
- the board wants documented support for its decision.
What We Do on These Engagements
- Valuation of the target business, asset or equity interest at the agreed date
- Reports prepared for inclusion or reference in a circular or announcement
- Support for the independent financial adviser's fairness and reasonableness assessment
- Property and mineral asset valuations, including Chapter 18 and the VALMIN Code
- Responses to Exchange comments during vetting
- Post-completion purchase price allocation under HKFRS 3
Circular Timetables Drive Everything
Once an announcement is released, the circular clock is running, and the valuation sits on the critical path alongside the accountants' report and the IFA opinion. Bringing the valuer in at announcement stage rather than during drafting keeps the process controlled. Tell us your target despatch date at enquiry – we will confirm upfront whether the timetable is achievable.
Working Alongside the Deal Team
We work directly with the issuer's finance team, company secretary, financial advisers, IFA, reporting accountants and legal counsel, so the valuation is consistent with the accountants' report and the rest of the circular. Comments are handled as part of the engagement, not as a variation.
Experience
Valtech directors have signed valuation reports used in public disclosure by issuers listed in Hong Kong and Singapore, covering acquisitions and disposals across artificial intelligence, agriculture, retail, mining, internet, automotive, education, financial services, multimedia, real estate, entertainment, electronic equipment and infrastructure. The team has also valued overseas projects for SASAC filings in the PRC – relevant where a listed issuer has a state-owned parent or counterparty.
Frequently Asked Questions
Is an independent valuation mandatory for a major transaction?
Not in every case. The Listing Rules set disclosure requirements, with specific rules for property and mineral assets. Your sponsor or legal adviser will confirm what your transaction needs.
Can you work directly with our IFA?
Yes, and it is normal. We align methodology and assumptions with the IFA during the process so the documents are consistent before submission.
Do you handle connected transactions?
Yes. We confirm our independence before accepting the engagement and set out the basis of every material assumption, because these reports are read by parties looking for weaknesses.
Why Listed Issuers Choose Valtech
Few valuations face more reviewers than one in a public circular: the Stock Exchange, the IFA, reporting accountants, independent shareholders and, for many issuers, international institutional investors.
- A strong team with outstanding international credentials – CPA, CFA, FRM, MRICS, ABV (AICPA) and China Certified Public Valuer qualifications gained in Hong Kong, the United States, the United Kingdom and Mainland China. When your valuation is examined by authorities, auditors and international stakeholders, these credentials give it the standing a public document needs.
- Senior members closely monitor every valuation – a director leads each transaction, works directly with your deal team and signs the report. Exchange comments and your concerns are addressed by an experienced professional who has done this many times before.
- Hong Kong filing experience – reports signed for public disclosure by issuers listed in Hong Kong and Singapore.
- ISO 9001 certified quality management – defined review steps before release, which matters when a regulator reviews the file.
- Regional coverage – Hong Kong and Singapore offices for targets spanning several jurisdictions.
Request a Transaction Valuation Quotation
Tell us the target, the transaction structure and your target circular despatch date. A director-level valuer will reply with scope, fee and turnaround. Call +852 2388 9262 or email admin@valtech-valuation.com.
More detail: Valuation for HKEX notifiable transactions – Valtech Hong Kong
Valtech Valuation Advisory Ltd, Unit 2106, 21/F, Futura Plaza, 111-113 How Ming Street, Kwun Tong, Kowloon, Hong Kong. This article is general information, not valuation, accounting, tax or legal advice for any specific entity.