Thu, Jul 19, 2018 - Page 12 News List

IPO deals could increase by 66%: Deloitte & Touche

STRONG SHOWING:The first half of this year saw 28 companies list on the Taiwan Stock Exchange and TPEX, which could be attributed to rallies on the local bourse

By Crystal Hsu  /  Staff reporter

Initial public offering (IPO) deals for this year might grow by 66 percent, after a 33 percent pickup in the first half of the year due to a stable economy and vibrant capital market, Deloitte & Touche Taiwan said yesterday.

The first six months saw 28 firms list on the Taiwan Stock Exchange and the Taipei Exchange (TPEX), the most in five years, the international consultancy said in its semi-annual report, adding that they raised a total of NT$10.1 billion (US$330.26 million).

That represented a 33 percent increase in deals and a 38 percent gain in funding from the same period last year, it said.

The strong showing could be attributed to rallies on the local bourse and the government’s continued effort to promote industry, particularly biotechnology firms, Deloitte Taiwan managing partner Kenny Hong (洪國田) said.

The TAIEX remained firm above the 10,000-point mark in the first half of this year on large trading volume aided by stable economic expansions at home and abroad, which would likely push the number of IPO deals to between 65 and 70 toward the end of the year, with the capital raised likely to be between NT$22 billion and NT$25 billion, Hong said.

Deloitte Taiwan chief executive officer Casey Lai (賴冠仲) said the government should encourage certain local small and medium-sized enterprises to seek an IPO as some are competitive on the world stage.

The promotion of “hidden champions” could help to grow industry in Taiwan and elevate the international visibility of local shares, Lai said.

Electric scooter maker Gogoro Inc (睿能創意) would be an ideal IPO candidate if it demonstrates an interest, Deloitte Taiwan said.

IPOs can help family-owned business boost corporate governance and operating efficiency, making them more sustainable, Lai said.

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