Report on Initial Public Offering Applications, Delisting and Suspensions (As at 31 October 2018)

First Comment Letters Issued⁽⁷⁾

October 2018

Average number of days taken between the date of application and the date of issue of related first comment letter

Guidance issued to potential new listing applicants or their advisers on matters relating to the Listing Rules

October 2018

Average number of days taken between the date of request for guidance and the date of issue of written response⁽⁸⁾

Market Operations

31 Oct 2018

Report on Initial Public Offering Applications, Delisting and Suspensions
(As at 31 October 2018)

				Main Board	GEM	Total
New Applications Accepted⁽¹⁾
	a.		October 2018	23	3	26
	b.		2018 Year-to-date	266	67	333
Approvals in principle granted⁽¹⁾
	a.	October 2018		11	0	11
	b.	2018 Year-to-date		130	60	190
Active applications⁽¹⁾(as at 31 October 2018)
1.	Under processing
	a.	New applications accepted since 1 January 2018		161	47	208
	b.	Others		9 __________	3 __________	12 __________
		Sub-total		170	50	220
2.	Approval in principle granted
	a.	Approvals granted since 1 January 2018		22	2	24
	b.	Others		1 __________	0 __________	1 __________
Total				193	52	245

Inactive applications⁽²⁾ (since 1 January 2018)
1.	Lapsed
	a.	Approval in principle granted but not listed prior to application lapsed		26	20	46
	b.	Others		100	56	156
2.	Rejected			11	7	18
3.	Withdrawn			5	4	9
4.	Returned⁽³⁾			0 __________	0 __________	0 __________
	Total			142	87	229

5.	Renewals⁽⁴⁾			101	62	163
6.	Returned cases resubmitted⁽⁵⁾			0 __________	1 __________	1 __________
	Total			101	63	164
No. of new listings (since 1 January 2018)
		(i)	Newly listed companies⁽⁶⁾	114	72	186
		(ii)	Transfer of listing from GEM to Main Board	9 __________	N/A __________	9 __________
Total				123	72	195

⁽¹⁾	Includes application(s) by investment vehicle(s) pursuant to Chapters 20 and 21 of the Main Board Listing Rules, application(s) for transfer of listing from GEM to the Main Board, and deemed new applicant(s)pursuant to Main Board Listing Rule 8.21C or Main Board Listing Rule 14.84, and very substantial acquisition(s) treated as reverse takeover(s) pursuant to Main Board Listing Rule 14.06(6)/GEM Listing Rule 19.06(6).
⁽²⁾	Includes any application (or renewal) not approved, returned, rejected or withdrawn within six months from date of application.
⁽³⁾	Applications accepted for vetting but subsequently returned on the ground that the information in the listing application proof or related documents is not substantially complete.
⁽⁴⁾	Includes all applications accepted within three months following a lapsed, rejected or withdrawn application by the same applicant.
⁽⁵⁾	Applications resubmitted to the Exchange after an 8-week moratorium from the date of the return letter.
⁽⁶⁾	Not include transfer of listing from GEM to the Main Board.
⁽⁷⁾	First comment letters are the first letters issued by Listing Department staff that contain the comments on the respective listing applications. It only covers the first comment letters issued this month. For reports issued from January 2011 onwards, non-business days have been subtracted from “the average number of days taken”. The figures exclude cases for a transfer of listing from GEM to the Main Board. If included, the number of first comment letters issued is 34 and the average number of days taken is 24.
⁽⁸⁾	Covers only the guidance letters issued this month. For the reports issued from January 2011 onwards, non-business days have been subtracted from "the average number of days taken".

Delisting and Suspension Information
(As at 31 October 2018)

			Main Board	GEM	Total
(a)	Number of delisted companies (since 1 January 2018)
	a.	Withdrawal of listing pursuant to privatisation	1	0	1
	b.	Transfer of listing from GEM to Main Board	N/A	9	9
	c.	Cancellation of listing pursuant to delisting procedures under the Listing Rules	3	0	3
	d.	Voluntary withdrawal of listing	5 __________	0 __________	5 __________
Total			9	9	18
(b)	Number of companies in suspension for three months or more (as at 31 October 2018)
	a.	Main Board companies in delisting procedures under Practice Note 17⁽⁹⁾	22	N/A	22
	b.	Companies given notice for delisting⁽¹⁰⁾	0	4	4
	c.	Other suspended companies⁽¹¹⁾	42	6	48
	d.	Delisting approved by the Listing Committee	4* __________	0 __________	4 __________
Total			68	10	78

Other Information
(As at 31 October 2018)

			Main Board	GEM	Total
(c)	Number of listed companies (as at 31 October 2018)		1,898	387	2,285

⁽⁹⁾	Main Board companies that are placed in a three stage process of delisting under Practice Note 17 to the Main Board Listing Rules for failure to maintain sufficient operations or assets.
⁽¹⁰⁾	The Exchange has decided to commence procedures under Main Board Rule 6.10 or GEM Rule 9.15 to cancel the listing of companies on the grounds set out in Main Board Rule 6.01 or GEM Rule 9.14.
⁽¹¹⁾	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.

*	The companies have applied to the Exchange to review the delisting decisions. The review procedures are in progress.

This report is updated on the last trading day of each month.

Ends

Updated 22 May 2020