The Taiwan Monthly

Sep. 2020

Listed Companies and Initial Public Offerings

Taiwan Capital Market Forum - Business Outlook amid COVID-19

The Taiwan Stock Exchange Corporation (TWSE), PwC Taiwan, and SinoPac Securities cohosted the "Taiwan Capital Market Forum - Business Outlook amid COVID-19" in Taipei on August 17. This was the first time that the three worked together in Taipei. The event received more than 50 local and international business owners and executives interested in listing in Taiwan and representatives of domestic listed companies and their subsidiaries. The business representatives all showed strong interest in Taiwan's capital market.


The impact of COVID-19 has sent shock waves through the global economy and supply chains in 2020. The future remains filled with uncertainties. To facilitate businesses turn a crisis into opportunities, the forum organizers invited experts from different fields to speak on topics such as risks and countermeasures in a changing world, tax planning for Taiwanese businesses trying to expand globally, and planning for entry into capital markets. These topics were designed to encourage businesses gain a foothold amid changes and start planning anew, and achieve growth and sustainability with support of the capital market.


TWSE President Lih-Chung Chien commented that as of the end of 2019, the total market capitalization of Taiwan's listed companies exceeded US$1 trillion. The figure placed Taiwan in the 18th place on the World Federation of Exchanges (WFE) rankings, or 12th by trading volume. The turnover for primary listed (KY) stocks was 180.01%, suggesting a far more active environment than the market as a whole or the neighboring markets. Furthermore, Taiwan's capital market has an advantage in terms of regulatory transparency, control of the length of review process, adoption of international standards, unobstructed financing and refinancing processes, and internationally recognized corporate governance practices. There are currently 78 companies with primary listing in Taiwan. In the first half of 2020, the IPO market was not as active as it was a year ago due to COVID-19. However, new ideas will be introduced to counter the changes and reinvigorate Taiwan's capital market.


Through this forum, TWSE continues to illustrate the concessionary measures in response to IPOs affected by COVID-19, including allowing extension for listing deadline. For IPOs in 2020 and 2021, TWSE will evaluate the impact of the epidemic on the applicant company and its business performance in the most recent period. TWSE will also focus on the stability and growth potential of the applicant company's future business development. In addition, TWSE will implement flexible adjustments to the profitability criteria for IPOs in 2021 so that applicants who had been affected by the epidemic but are showing steadily recovering operating conditions will still have the opportunity to raise funds in the capital market.


TWSE has always taken an aggressive approach to attracting businesses to the exchange. However, COVID-19 has kept TWSE from visiting other countries as before to hold listing information sessions or visit local businesses interested in listing in Taiwan in 2020. Nevertheless, TWSE is working hard to advertise the strengths of Taiwan's capital market and attract foreign companies to the exchange. Changes in the global economy is having a certain degree of impact on business, but also creating new opportunities in the same time. TWSE encourages businesses to embrace these new challenges and opportunities and find new paths forward in a changing world. TWSE also urges companies to use capital injections from the capital market to find the best growth opportunities and build a strong foundation with a long-term perspective. Meanwhile, more sound investments are expected to become available in the process to enable investors to share in the success.


For further inquiries, please contact Mr. Chuang at