Measures to Deter Multiple Applications in IPO

The SFC wishes to make the following statement in response to media enquiries about duplicate or multiple applications for shares in IPOs:

The SFC has been following up a number of matters related to suspected duplicate applications in recent IPOs with HKEx and share registrars.

The SFC has also liaised with the Police and encouraged share registrars to pass application details to the Police where there was suspected fraud that may warrant the Police investigation.

The SFC will continue to have discussions with market participants with a view to minimising the opportunity for dishonest people to submit multiple applications.

It is noted that there were reported comments that measures that might be considered included dispensing with the public offer in a new listing and only allowing placement to institutional investors (so that retail investors could only buy newly listed shares in the secondary market) or allowing multiple applications. The SFC wishes to clarify that these were not options being considered.

Individuals who attempt to abuse the system should be aware that deliberately using false or stolen information in duplicate applications is fraudulent behaviour and that regulatory attention is being focused on this area.

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