Report on Initial Public Offering Applications, Delisting and Suspensions (September 2024)

Market Operations

30 Sep 2024

Report on Initial Public Offering Applications, Delisting and Suspensions
(September 2024)

This monthly report provides key statistics relating to the various stages in discharging our regulatory oversight duties during the reporting period. The information for the reporting period covers, among others, the number of applications processed and their current status, the number of comment letters and guidance issued to new/ potential new listing applicants and their advisers with the corresponding processing time, the number of rejection and return of listing applications, as well as the number of delisted and suspended companies.

Overview of listed companies

	Main Board	GEM	Total
Number of listed companies
1. As at 1 January 2024	2,283	326	2,609
2. Newly listed companies	42	3	45
3. Delisted companies	27	6	33
4. As at 30 September 2024	2,298	323	2,621

Initial Public Offering Applications (As at 30 September 2024)

	Main Board	GEM	Others ⁽¹⁾	Total
A. Applications Processed (2024 Year-to-date)^{(2) (3)}	179 _____	3 _____	31 _____	213 _____
1. Applications brought forward from 29 December 2023 and renewal applications	71	3	5	79
2. New applications accepted in 2024 ⁽⁴⁾	108 _____	0 _____	26 _____	134 _____
Total	179	3	31	213
The application status of which as at 30 September 2024⁽²⁾
1. Listed ⁽⁵⁾	42	3	30	75
2. Approved by the Listing Committee pending listing	16	0	1	17
3. Under processing	80	0	0	80
4. Others (i.e. lapsed ⁽⁶⁾, rejected ⁽⁷⁾ , returned ^{(7) (8)} or withdrawn)	41 _____	0 _____	0 _____	41 _____
Total	179	3	31	213

Below are the respective processing time taken by the Exchange in respect of different types of submissions. In this table, the data covers the letters/ responses made by the Exchange within the relevant reporting month, and the processing time taken by the Exchange refers to business days taken between the acceptance date of the relevant application/ submission and the date of issue of the letter/ response by the Exchange.

The Exchange treats all applicants fairly and equally in accordance with relevant Listing Rules, and the length of the processing time depends on various factors including quality and timeliness of the applicants’ responses and time required for obtaining clearance by the applicant from other relevant regulators. The Exchange generally does not impose any deadline for response to its comment letters/ guidance.

B. Processing Time
First Comment Letters Issued in September 2024 on New Applications	5
Median of business days taken by the Exchange for issuing first comment letter	12
All Comment Letters Issued in September 2024 on Applications	19
Median of business days taken by the Exchange for issuing comment letter	13
Guidance issued in September 2024 on Potential New Applications on Matters Relating to the Listing Rules	3
Median of business days taken by the Exchange for issuing written response	11
Applications presented to the Listing Committee hearing for the 12 months ended 30 September 2024	84
1. Median of total business days taken by the Exchange to issue comments from the listing application date to Listing Committee hearing	39
2. Median of total business days taken by parties other than the Exchange (e.g. sponsors) from the listing application date to Listing Committee hearing	94
3. Median of total business days taken from the listing application date to Listing Committee hearing	137
New Listings for the 12 months ended 30 September 2024 ⁽⁹⁾	71
Median of total business days from the Listing Committee hearing to listing	36

(1)	Including application by investment vehicle pursuant to Chapters 20 and 21 of the Main Board Listing Rules.
(2)	The number of applications processed also includes application by investment vehicle pursuant to Chapters 20 and 21 of the Main Board Listing Rules, application for transfer of listing from GEM to the Main Board, and deemed new applicant pursuant to Main Board Listing Rules 8.21C or 14.84/ GEM Listing Rule 19.84, and very substantial acquisition treated as reverse takeover pursuant to Main Board Listing Rule 14.06(6)/ GEM Listing Rule 19.06(6). Renewal applications refer to applications accepted within three months following a lapsed application by the same applicant. In this context, the Exchange considers such renewal application as a continuance of its original application. New applications include (i) applications filed with the Exchange for the first time; and (ii) applications filed after a returned, rejected or withdrawn application, or more than three months after a lapsed application by the same applicant.
(3)	For the applications processed in a relevant reporting year, they include applications that were approved by the Listing Committee prior to, or during, the relevant reporting year. As at the date of this report, 53 Main Board applications and 3 GEM applications were approved by the Listing Committee during 2024.
(4)	New Applications accepted in September 2024 include 4 Main Board applications, 0 GEM applications, and 3 applications pursuant to Chapter 20 of the Main Board Listing Rules.
(5)	Including nil company transferred their listing from GEM to Main Board.
(6)	An application shall lapse when six months have elapsed since the submission of an application form pursuant to Main Board Listing Rule 9.03/ GEM Listing Rule 12.07.
(7)	Nil rejection and nil return of listing application for the year to date. If an application is rejected or returned, the same applicant may resubmit a new listing application once it has subsequently satisfied all applicable Listing Rules.
(8)	Applications returned on the ground that the information in the listing application proof or related documents is not substantially complete.
(9)	Not including listings by investment vehicle(s) (including Exchange Traded Funds (ETFs) and Real Estate Investment Trust (REITs)) and investment companies pursuant to Chapters 20 and 21 of the Main Board Listing Rules.

Delisting and Suspension Information
(As at 30 September 2024)

	Main Board	GEM	Total
A. Number of delisted companies (since 1 January 2024)
1. Cancellation of listing pursuant to delisting procedures under the Listing Rules	15	6	21
2. Voluntary withdrawal of listing⁽¹⁰⁾	12	0	12
3. Transfer of listing from GEM to Main Board	N/A _____	0 _____	0 _____
Total	27	6	33
B. Number of companies in suspension for three months or more (as at 30 September 2024)
1. Delisting approval by the Listing Committee	2	0	2 ⁽¹¹⁾
2. Other suspended companies⁽¹²⁾	69⁽¹³⁾ _____	6⁽¹⁴⁾ _____	75 _____
Total	71	6	77

(10)	Either under (a) a compulsory acquisition under Main Board Rule 6.15(1) or GEM Rule 9.23(1) or (b) a privatisation by way of a scheme of arrangement or capital reorganisation under Main Board Rule 6.15(2) or GEM Rule 9.23(2).
(11)	1 Main Board company has applied to the Exchange to review the delisting decisions of the Listing Committee. 1 Main Board company has applied to the High Court of Hong Kong for judicial review of the delisting decisions of the Listing Review Committee. The review procedures and relevant legal proceedings are in progress.
(12)	The Exchange may cancel the listing of companies if trading in their securities has remained suspended for 18 continuous months under Main Board Rule 6.01A or 12 continuous months under GEM Rule 9.14A. Depending on the specific facts and circumstances of a suspended company, the Exchange may at any time publish a delisting notice stating its right to delist the company if it fails to resume trading within a shorter period specified in the notice.
(13)	Please refer to the Monthly Prolonged Suspension Status Report (Main Board) for the status of companies suspended for three months or more.
(14)	Please refer to the Monthly Prolonged Suspension Status Report (GEM) for the status of companies suspended for three months or more.

Ends

Updated 03 Oct 2024