Company: MEGL
Filing Date: 2025-06-09
Form Type: F-1/A
Source: 0001641172-25-014301
Chunk: 78

Company: Magic Empire Global Ltd
Filing Date: 2025-06-09
Form: F-1/A
Chunk 78
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 activities in Hong Kong

IPO

Hong Kong is one of the leading IPO markets in the world. In 2024, there were 71 IPOs launched in Hong Kong, raising approximately HK$87.5 billion, earning the Stock Exchange a fourth place among global stock exchanges. Set out below was the number of IPOs and equity funds raised via IPO in the Stock Exchange from 2015 to 2024.

<div align='center'>Source: Stock Exchange</div>

The decrease in number of IPOs and equity funds raised via IPO from 2021 to 2023 were mainly due to the impact caused by the COVID-19 outbreak and the raise in interest rates unveiled by the Federal Reserve in the second half of 2022. Hence, the capital markets and fundraising activities were negatively affected. There was a rebound on the number of IPOs and equity funds raised via IPO in 2024. Considerable opportunities have created for our sponsor and compliance advisory service business.

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Listed companies in Hong Kong

The number of listed companies increased steadily over the past 10 years driven by the active IPO and primary fund-raising activities in the Stock Exchange. Set out below are the number of listed companies in the Stock Exchange from 2015 to 2024.

<div align='center'>Source: Stock Exchange</div>

Listed companies may engage a financial adviser or an independent financial adviser to provide financial advisory services. We provide financial advisory services to listed companies in Hong Kong. The increase in the number of listed companies in the Stock Exchange, in particular SME, has created considerable opportunities for our financial advisory and independent financial advisory service and corporate services business.

Entry barriers to the corporate financial advisory service industry in Hong Kong

Regulatory requirements

Under the legal framework in Hong Kong, corporate financial advisory service providers are required to fulfill the licensing requirements imposed by the SFC and the cost for new entrants to comply with and fulfil licensing conditions and ongoing regulatory requirements is high. All corporations and individual acting as financial intermediaries must be authorized by the SFC through the licensing system that it operates. Through licensing, the SFC regulates the financial intermediaries of licensed corporations and individuals that are carrying out the regulated activities, including dealing in securities and advising on corporate finance.

Requirement to comply with the FRR

All licensed corporations are required to comply with the capital requirements as stipulated in the FRR in order to become and remain licensed by the SFC. Licensed corporations are required to have sufficient liquid assets to meet ongoing liabilities as