Taiwan FSC to Introduce Measures to Catalyse IPOs

Source: Regulation Asia Editors, Regulation Asia 2020-06-30

The Covid-19 pandemic has affected companies’ financial performance in the first half of the year, making them ineligible to list on the stock market.

Taiwan’s FSC (Financial Supervisory Commission) reportedly plans to introduce new policies later this year to help companies list on the local stock market.

Taiwan has seen just nine IPOs so far this year, lagging behind the FSC’s target of 52 for the whole year.

The Covid-19 pandemic has affected companies’ financial performance in the first half of the year and disrupted their listing plans, said FSC Chairman Thomas Huang in a Taipei Times interview.

Under current rules, companies must be profitable to qualify for listing, otherwise they must have sizable net value and large revenues, or be select biotech firms recommended by the government.

In view of the pandemic, the FSC is considering allowing the TWSE (Taiwan Stock Exchange) and TPEX (Taipei Exchange) to use companies’ earnings results in the third quarter when reviewing IPO qualifications, Huang said.

“We are not lowering our standards. We want to help companies mitigate the effect of the pandemic and continue their fundraising plan.”

The new measures will be announced next month.

Huang said the FSC is on schedule to implement odd-lot intraday trading in October, allowing investors to buy shares in quantities less than 1,000 during regular trading hours. More than 60 local brokerages have expressed a willingness to handle the new service.

In June 2021, the TWSE is also introducing a market-making system to improve liquidity for companies that are financially sound, but not popular among investors.

The FSC is also working to allow banks to cooperate with third-party service providers to share consumer data (with consent) by the end of this year, as it moves to introduce open banking in Taiwan.

FSC

IPO

Taiwan FSC to Introduce Measures to Catalyse IPOs

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