.jpg)
In order to increase the market size and enhance international competitiveness, the Taiwan Stock Exchange (TWSE) has adopted an open policy to attract more foreign enterprises for primary listings (F share) since 2008. In doing so, TWSE had been to the Mainland, Singapore and Vietnam to promote the advantages of listing in Taiwan. Now, our efforts have been paid off with more and more offshore Taiwanese, Chinese and overseas enterprises choosing Taiwan for fundraising. So far, 5 foreign companies have been listed on TWSE and more foreign listings float shares in last half year.
The outstanding performances of Taiwan stock market, such as high P/E ratio, liquidity and high dividend yield, sophisticated listed industrial sectors and the transparency of information disclosure, are not only attractive to foreign investments but also attract more and more foreign companies to launch their IPO in Taiwan. In late April, 4 foreign companies had been applied for listing in TWSE: auto parts manufacturer Yusin Holding (Code: 4557), air compressor manufacturer Lida Holdings (Code: 4552), cellulose producer Jinan Acetate Chemical (Code: 4763) and sports products manufacturer and sales BONNY WORLDWIDE LIMITED (Code: 8467). Moreover, Apex International (Code: 4927), an over-the-counter (OTC) listed company, had applied for switch its listing to the TWSE at the end of June.
As of June 2015, the number of accumulated primary-listed foreign company has reached to 48. The increasing number of primary listings not only injected momentum to the Taiwan’s capital market, but also showcased the market competitiveness in the Asia-Pacific region. In 2014, the P/E ratio of those primary-listed was as high as 17.18, the turnover rate as 224.62%, which was higher than the average rate of 15.42 and 81.48% of all those listed companies. Furthermore, dividend yields were as high as 3.43%, showcasing the favorability of primary-listed companies by investors.
TWSE is quite some time famous with its function of fostering hi-tech industries. In recent years, foreign technology companies have been proactive in fund-raising in Taiwan and these fundraisings constituted 70% - 80% of the total volume by all of the overseas companies. With diversified measures, these fundraisings stemmed from IPO (40%), bonds issued (45%), new shares increase (3%) and issue of Global Depositary Receipts (12%). It is quite flexible for financial planning.
According to the geographic analysis by TWSE, its potential IPO resources are expanding from mainland China to the Southeast Asia and US as well. As such, TWSE had been to the Western cities in US, such as San Diego, Los Angeles, Silicon Valley, to invite more quality enterprises to go listing in Taiwan so as to make TWSE more internationalization.
In the future, TWSE would continue to co-ordinate with the authorities to promote F shares and attract more overseas corporations to go listing in Taiwan. TWSE would also encourage these companies to increase their investments and expand their businesses in Taiwan so as to boost the economic development and to expand the size of Taiwan capital market, with an ultimate goal of achieving a win-win situation to all parties.
