Local initial public offering (IPO) activity could pick up significantly this year as firms that delayed an application last year take action, encouraged by rallies of the local bourses, PricewaterhouseCoopers Taiwan (PwC) said on Monday.
The international accounting firm’s local branch forecast between 55 and 60 IPO deals this year, which would be a significant increase from 42 last year, PwC market and business development leader Kevin Lin (林鈞堯) said.
The estimate included companies that would list on the Taiwan Stock Exchange and the over-the-counter Taipei Exchange, led by businesses in the biotechnology and semiconductor industries, he said.
“The IPO market is to stage a recovery this year, as many firms opted to stay on the sidelines last year amid drastic foreign exchange volatility and other concerns,” Lin said.
The New Taiwan dollar last year rose 8.14 percent against the US dollar, weighing on local firms’ earnings and casting a shadow over subscription interest by IPO applicants, he said.
Some market watchers also expressed concerns that the rally in the TAIEX might not hold firm after the benchmark index surpassed the 10,000-point mark in May last year.
However, equity forecasters at home and abroad have said bullish markets in emerging Asian countries to be sustained this year.
Securities authorities have given approval to 19 firms, including fermented product developer and supplier GeneFerm Biotechnology Co (金穎生技), IC designer Excelliance MOS Co (杰力) and entertainment service provider Kuang Hong Arts Management Inc (寬宏藝術), Lin said.
Another 36 firms that are seeking IPO counsel might obtain approval later this year, he said.
However, Taiwan Stock Exchange chairman Hsu Jan-yau (許璋瑤) on Wednesday said that IPO activity has weakened worldwide, as firms now have more channels to raise capital.
Firms can seek fresh capital through mergers and acquisitions, private placement, debt issuance and other options at lower cost, Hsu said.
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