Home
Previous Issues
TWSE Website
Subscribe

The Taiwan Monthly

Sep. 2022
Back

Trading Policies

First exchangeable preferred stock listed on the TWSE

The Taiwan Stock Exchange is pleased to announce the first exchangeable preferred stock (the “EPS”); the Class F exchangeable preferred shares of Taishin Financial Holding (securities code: 2887Z1 / ISIN: TW0002887Z13), listed on July 26, 2022.

 

The shareholders of Taishin Financial Holding Class F preferred shares may exchange Class F preferred shares for CHB shares (securities code: 2801 / ISIN: TW0002801008) at the exchange ratio of 1:1 from the beginning of the 8th year of issuance up to the end of the 10th year of issuance. Ten years after the issue date, the issuer may recall all outstanding Class F preferred shares and exchange them for CHB shares at the ratio of 1:1.

 

The TWSE reminds that overseas Chinese, foreign nationals and mainland area investors who invest in exchangeable preferred stocks have to comply with the following rules:

  1. The issuer has, or may have, a legal limitation in which a ceiling is imposed on the percentage of share ownership of stocks. This applies to two groups of investors, foreign nationals and/or mainland area investors. If this limitation applies to the issuer, this rule must be followed as well as applying to the EPS.
  2. When the underlying stock has a legal limitation in which a ceiling is imposed on the percentage of share ownership of the stock, and still applies to the specific groups as mentioned.
    1. Once a request is made to exchange the EPS to be the underlying stocks by any overseas Chinese, foreign national or mainland area investor, the TDCC reviews the application to confirm if the limitation has been reached or not. If yes, then the TDCC will refuse the application.
    2. In the circumstance that the issuer redeems the EPS, the TDCC still checks overseas Chinese, foreign national and mainland area investors for the ceiling in the share percentage of underlying stock. If the TDCC denies the redemption of these groups, then the issuer must pay cash to redeem the EPS from foreign nationals and/or mainland area investors.

For further inquiries, please contact Mr. Chen at  rickychen@twse.com.tw.

 

Back