The Taiwan Monthly

Aug. 2020

Listed Companies and Initial Public Offerings

The TWSE adopts concessionary measures in response to IPOs affected by COVID-19

As the COVID-19 epidemic has affected global economic development, the TWSE seeks to assist companies affected by the epidemic. For companies that have gradually improved their business operations and still have the opportunity to raise funds in the capital market, the TWSE shall adopt response measures for applications for initial public offering (IPO). Companies that entered into the listing contract with TWSE before the end of 2020 may apply to extend their listing date twice for a duration of 3 months each time. It means that they may postpone their listing date specified in the listing contract up to 9 months. For IPOs in 2020 fiscal year and 2021 fiscal year, the TWSE shall evaluate the impact of the epidemic on the applicant company and the improvement of operating conditions in the most recent period. It shall also focus on the stability of its future business development and growth. The TWSE shall also implement flexible adjustments on the criteria for determining profitability for IPOs in 2021 fiscal year so that applicants have the opportunity to raise funds in the capital market despite the impact caused by the epidemic.


For IPO applications in 2021 fiscal year, the applicant company shall explain the level of impact of the epidemic, the duration of the impact, and the recovery status of operation. After the underwriter submits an opinion on the reasonableness of the explanation, the applicant company may be eligible for the following profit requirement: 

  1. Domestic issuers: The observation period of the profitability shall be flexibly adjusted to any two fiscal years in the most recent three fiscal years. For instance, if a company applies for IPO in 2021 fiscal year and the year of the impact is evaluated as 2020 fiscal year, it may use 2018 and 2019 fiscal years for determining its profitability, and the most recent fiscal year refers to 2019 fiscal year.
  2. Foreign issuers: The profit standards shall be flexibly adjusted to the attainment of NT$ 1.5 hundred million in cumulative net income before tax for the most recent three fiscal years and a positive net income before tax for the most recent fiscal year.


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