Snap's US IPO offers lessons for HKEx

The US tech giant’s sale of non-voting shares offers an opportunity for Hong Kong to rethink its approach to new listings. It's an option the city should reject.

While Asia's equity capital markets start the year slowly, envious eyes are being cast across the globe, as New York prepares for a multibillion-dollar IPO from Snap.

Based on its initial fundraising target of $3 billion, Snap promises to be the biggest US IPO in more than two years, since Alibaba's September 2014 listing. Its key product is Snapchat, an instant messaging app beloved by millennials for its playful picture filters and the fact messages sent using it vanish after a specified time.

Yet it is not the product or the valuation that have fed market chatter about this high-profile technology play. Rather, Snap is getting...

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