FAQ

Securities Listing

  1. How does an issuer apply for listing of stocks on Taiwan Stock Exchange?
  2. How is the offering price of a stock set? Is there any formula for reference?
  3. When does a listed company need to make public announcement of financial statements?
  4. What is a CPA audited and certified financial report? What are the types of auditor'sreport?
  5. What are the regulations of placing listed securities under an altered trading method, suspending the trading of such securities and delisting such securities?
  6. Is a listed company allowed to apply for delisting?

1. How does an issuer apply for listing of stocks on Taiwan Stock Exchange?

To apply for listing of stocks, the issuer needs to file an application with the TWSE. After reviewing the application documents, the TWSE will submit an examination report to the Listing Review Committee and the Board of Directors of TWSE for consideration. After the Board of Directors of TWSE gives approval, the applicant can ask its underwriters to proceed with the underwriting. After the underwriting formalities are completed and the distribution of equity meets the established criteria, the issuer may set a listing date with the TWSE to commence trading of stocks on the market.

2. How is the offering price of a stock set? Is there any formula for reference?

Investors can refer to the information disclosed in the prospectus. According to the regulations, the issuer is required to disclose the method or principle applied to set the offering price. The issuer also needs to provide a description of the difference between the method applied and the methods that are commonly employed worldwide, such as market price method, cost method, and discounted cash flow method.

3. When does a listed company need to make public announcement of financial statements?

According to Article 36 of the Securities & Exchange Act, a listed company is required to announce to the public and file with the competent authority its annual financial report that has been duly audited and certified by a certified public accountant, approved by the board of directors, and recognized by the supervisors within three months after the close of its fiscal year. A listed company is also required to announce to the public and file with the competent authority its first quarter, second quarter and third quarter financial reports that have been reviewed by a certified public accountant and reported to the board of directors within 45 days after the end of the first , second and third quarters of each fiscal year.

4. What is a CPA audited and certified financial report? What are the types of auditor'sreport?

  1. According to Article 36 of the Securities & Exchange Act, a listed company is required to announce to the public and file with the competent authority its annual financial report that has been duly audited and certified by a certified public accountant, approved by the board of directors, and recognized by the supervisors within three months after the close of its fiscal year
  2. According to Statement of Auditing Standards No. 33, an auditor'sreport may conclude with:
    (1) Unqualified opinion;
    (2) Modified unqualified opinion;
    (3) Qualified opinion;
    (4) Adverse opinion;
    (5) Disclaimer of opinion.

5. What are the regulations of placing listed securities under an altered trading method, suspending the trading of such securities and delisting such securities?

Please refer to Article 49 to 51-3 of the Operating Rules of Taiwan Stock Exchange Corporation. http://eng.selaw.com.tw/FLAWDAT01.asp?LSID=FL007304

6. Is a listed company allowed to apply for delisting?

Yes. Please refer to Application Procedures for Terminating the Listing of Securities by Listed Companies. http://eng.selaw.com.tw/FLAWDAT01.asp?LSID=FL007282

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