Taiwan Focus: Sourcing funds through IPOs

Since 2008, the Taiwanese authorities have opened the door welcoming foreign companies to apply for Taiwan initial public offerings (IPOs). There are now almost 45 foreign companies which have listed their shares on either the Taiwan Stock Exchange (TWSE) or the Taiwan GreTai Securities Market (GreTai Market). In addition, hundreds of candidates are in the pipeline. The bourses continuously and warmly welcome all foreign companies to list their shares and source funds through Taiwan IPOs. Among those listed companies and those in the pipeline, the most typical types of the enterprises which sought or are seeking Taiwan IPOs are: (1) the mainland-based operation enterprises which are established by Taiwan businessmen who, despite decades of intense relations between mainland China and Taiwan, crossed over to mainland China and successfully seized business opportunities in such an emerging market and who, would like to either share their success with their homeland people or raise funds from the Taiwan market for further growth; and (2) the foreign enterprises which are established, operated or managed by Chinese (either mainlanders, Taiwanese or other Chinese all over the world) and have close business relations or wish to establish further relations with Taiwan companies and industries.

Although it's now possible for mainland-based enterprises and foreign enterprises which are established by Chinese or other nationals to raise funds from Taiwan IPOs, proper restructuring and arrangements before a formal application through the assistance of underwriters, legal counsels and accountants are prerequisites.