The new stock allocation result document contains errors and was corrected only 5 days after listing. The industry laments, "Such a mistake has never been seen since the opening."

Mainland network solution provider FS.COM (3355) corrected its allocation results document only on the fifth trading day after its listing, but fortunately, the actual allocation execution was correct. Some bankers stated that in such announcements, the sponsor should bear the greatest responsibility. Both the spokespersons for the Securities and Futures Commission and the Hong Kong Stock Exchange stated that they would not comment on individual incidents. FS.COM: The allocation execution itself is correct The first allocation results announced by FS.COM on the 20th of this month (Friday) contained unreasonable elements. Firstly, the announcement indicated that the number of applications received (number of successful applicants) was 31,492, and no subscribers could secure even one lot, which implies that only 31,492 lots of shares were distributed, inconsistent with the final sale of 40,000 lots in the public offering portion. Secondly, according to the data in the announcement, the total number of accepted applicants (successful applicants) in Group B (subscription amount over 5 million) was only 5,575, not 11,492. FS.COM issued a clarification announcement last Friday close to 9 PM and updated the allocation results for Group B. Among them, the number of successful applicants in Group B was indeed correct, being 11,492; all Group B applicants secured at least 1 lot, with those drawing 2,000 to 4,000 lots receiving 1 to 2 lots; those drawing 5,000 to 10,000 lots receiving 2 to 3 lots; and those drawing 20,000 lots receiving 3 to 4 lots. In response to our inquiry, FS.COM stated that the allocation execution itself was correct, and the earlier announcement's calculation omitted the statistics for the "secured" portion, resulting in incomplete disclosure, and the latest announcement's allocation results should prevail. Industry: Sponsors should bear the greatest responsibility A senior banker stated that the documents of listed companies are prepared and verified by multiple parties, including sponsors, lawyers, accountants, and financial printers. If one link goes wrong, it will affect the entire chain. However, if it is an IPO (Initial Public Offering) document, the sponsor is the "backdoor, any mistakes are blamed on the sponsor." This individual believes that in terms of allocation announcements, the sponsor should bear the greatest responsibility and shared that their first job in the industry was to verify data, and this time the joint sponsors were three investment banks, meaning "everyone was not paying attention." Regarding the current advocacy by some groups to relax the restrictions on key personnel simultaneously supervising or participating in five active listing committee projects, this individual expressed support but emphasized the need to "do their job well." An industry insider described, "Since the opening of the market, such a mistake has never been seen; no wonder the previous (regulatory body) sent a letter to the sponsor reminding them of quality issues." The Securities and Futures Commission issued a circular at the beginning of the year expressing high concern over the problems that arose during the surge in new listing applications last year, including serious deficiencies in the preparation of some listing documents, potential misconduct by sponsors, and severe mismanagement of their resources. Three new stocks have issued clarification announcements this year In fact, new stock allocation results occasionally have minor errors, including wording or data, but most will issue clarification documents on the listing day or the following day, and they rarely involve the "allocation criteria for Hong Kong public offerings" section. From the beginning of the year to now, there have been 34 new stocks listed in Hong Kong, among which three have issued clarification announcements regarding allocation results, including FS.COM, Bairun Technology (6082), and Youlesai Sharing (2649) Last October, Haixi New Drug (2637), which was listed, had to postpone its listing schedule due to the need for additional time to finalize the allocation results after obtaining approval from regulatory authorities. FS.COM was listed last Monday, raising over HKD 1.66 billion, with estimated listing expenses of nearly HKD 105 million, accounting for 6.3% of the raised amount. The joint sponsors are China International Capital Corporation, CITIC Securities International, and China Merchants Securities International. The public offering received nearly 197,000 applications, oversubscribed by 1,578.7 times, while the international offering was oversubscribed by 9.9 times. On its first day of listing, FS.COM rose 13.5% compared to the offering price of HKD 41.6; as of last Friday, it had accumulated a rise of 10.6%