Tue, Nov 14, 2006 - Page 11 News List

TSEC unveils plan to lure companies to local bourse

By Jason Tan  /  STAFF REPORTER

The Taiwan Stock Exchange Corp (TSEC) has drafted proposals to lure more companies to list on the local bourse, its spokesman said yesterday.

"These are our initial plans and we will have to get the government's approval before possible implementation next year," spokesman Su Song-chin (蘇松欽) said in a phone interview.

Ideas

One of the proposals is to shorten the pre-listing evaluation, which currently takes up to over six months. Others include promoting Taiwan depository receipts and lower cash outflow limits.

The stock exchange will also look into relaxing regulations on stakeholders, in addition to slashing capital requirement for initial public offerings (IPOs) to NT$300 million (US$9.2 million), from the current NT$600 million.

TSEC is under pressure to attract local and foreign money into the country, as an increasing number of Taiwanese firms and subsidiaries have been launching IPOs in Hong Kong.

Skirting restrictions

This allows local firms to bypass the government's restrictions on China-bound investment. China is the main investment destination for Taiwanese firms.

The Cabinet introduced a plan in late September to beef up the financial market, aiming to attract 250 companies to list on the local stock markets within the next three years.

Of that, it is expected that 90 companies will make IPOs on the Taiwan Stock Exchange, while the rest will go to over-the-counter GRETAI Securities Market.

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