:::

Listing requirements

Item Domestic issuer Foreign issuer
Required advisory guidance/trading period Undergone pre-listing advisory guidance with a securities underwriter or registration as emerging stock for one full term of 6 months. Undergone pre-listing advisory guidance with a securities underwriter or registration as emerging stock for one full term of 6 months.
  • A foreign issuer whose stock or depositary receipts are or have been listed on any major overseas securities exchange or securities market may be exempted from the required time period of advisory guidance or registration as emerging stock; however, this exemption does not apply if the foreign issuer has been delisted for over 6 months.
  • A foreign issuer that has passed the review of stock or depositary receipt listing at any major overseas securities exchange or securities market may reduce the required time period of advisory guidance or registration as emerging stock, provided that the time period may not be less than 2 months.
Company positioning The company has key technologies and innovative capabilities or business models, and shall have an evaluation submitted by the recommending securities underwriter.
Duration of corporate existence It has been incorporated and registered under the Company Act for at least two years at the time of the application for listing. The applicant company or any of its subsidiaries has business records for two or more fiscal years.
Company scale Upon listing application, the company should already have at least 10 million of common stock outstanding with a collective market value of at least NT$100 million.
Market capitalization and financial indicators One of the following criterion should be met when applying for listing:
Criterion I:
  • Market capitalization of NT$ 1billion or more.
  • Operating revenue for the aggregate for the last four quarters is greater than NT$100 million.
  • A sufficient amount of working capital covering the period of 12 months after the listing.
Criterion II：(Limited to Biotech and medical Businesses)
  • Market capitalization of NT$2 billion or more.
  • Working capital covering of 125% for the 12 months period after the listing.
  • A pharmaceutical company’s core product – new drug has to go through Phase I clinical trials.
Criterion III：
  • Market capitalization of NT$4 billion or more.
  • Working capital covering of 125% for the 12 months period after the listing.
Dispersion of shareholding The number of registered shareholders shall be 50 or more. Excluding company insiders and any juristic persons in which such insiders hold more than 50% of the shares, the shareholders shall hold 5% or greater of the total issued shares, or at least 5 million shares.
China shareholding restriction ─ Must conform to related stipulations in the Act Governing Relations between the People of the Taiwan Area and the Mainland Area. If individuals, juristic persons, groups, or other institutions from the Mainland Area have direct or indirect shareholding or capital contribution exceeding 30%, or substantial control over the company, the company will be reviewed on a special project basis by the competent authority.
Corporate governance
  • The minimum number of members of the board is five; the selection of independent directors and establishment of functional committees should be completed before the trading of shares.
  • The minimum number of members of the board is five, and more than one-half of them shall have a registered domicile in Taiwan.
  • The minimum number of independent directors is three, which constitutes at least one-fifth of the members of the board; at least two independent directors have a registered domicile in Taiwan.
  • At the time of the application for listing, the audit committee and remuneration committee must be constituted.
Lockup of the shares
  • The directors, presidents, core technicians, and shareholders holding 5% or more of the total issued shares of the company shall carry out matters relating to placement in centralized custody for the entire amount of their shareholding which has been stated on the listing application documents.
  • “Core technicians” refer to research and development supervisors, technical operation supervisors, or shareholders employed at the company who uses patent rights or professional technical skills as investment capital.
  • The company applying for listing may withdraw one-fourth of the shares placed in centralized custody only after the end of a 6-month period starting from the listing date thereof, and may further withdraw one-fourth of the shares every 6 months afterwards. All the shares may be withdrawn in full after the end of a two-year period starting from the listing date thereof.
Public Sale before listing The issuing company shall allocate a percentage of at least 3%, and no less than 500,000 shares, after deducting the number of shares to be retained for employee subscription and reserved for the lead securities underwriter, and offer the balance of such allocated shares in full for sale to the public by book building before the shares are listed, by means of a cash capital increase through new share issuance. However, provided that where this would require the allocation of 3 million shares or more for underwriting, the company may allocate a minimum of 3 million shares for public sale.
Continued counseling by the lead securities underwriter From the date of listing to the end of the 3 subsequent fiscal years, the company shall continue to retain the lead securities underwriter of the IPO to assist with compliance matters. However, if the TWSE deems it necessary to extend the appointment period, it may be extended.
Top