Funds raised through initial public offerings (IPOs) in Taiwan reached NT$4.501 billion (US$151.86 million) in the first half of this year, down from NT$12.06 billion over the same period last year, while the number of IPOs fell from 19 to 10, multinational accounting firm Ernst & Young said.
The COVID-19 pandemic has prompted many enterprises to put their fundraising plans on hold and dampened their willingness to go public, Ernst & Young said on Tuesday last week.
The local main board saw four IPOs in the six-month period, down from six a year earlier, with the funds raised plunging 82.1 percent year-on-year, while the over-the-counter (OTC) market saw the number of IPOs drop from 13 to six and the funds raised fall 12.1 percent, Ernst & Young said.
Among the 10 IPOs that did go ahead, proximity sensor maker Sensortek Technology Corp (昇佳電子) was the most successful, raising NT$2.14 billion on the OTC market on June 8, the firm said.
The high-tech industry completed five IPOs on the local equity market and raised a total of NT$2.75 billion in the first half, Ernst & Young said.
On the main board, the electric and machinery industry accounted for the majority of new listings, and on the OTC market, the semiconductor industry took the lead, it said.
Taiwan is not the only market to see a plunge in IPOs.
During the January-to-June period, 412 companies listed their shares worldwide, a drop of 95 from a year earlier, while the funds raised declined 12 percent to US$66.7 billion, Ernst & Young said.
Looking ahead, concerns over the COVID-19 pandemic are expected to continue to affect the IPO market in Taiwan and market uncertainty is unlikely to recede until the fourth quarter, the firm said.
Other factors such as the US recession, trade friction between Washington and Beijing, and the slowdown of the global economy are also factors that might undermine IPO activities in the second half of this year, it said.
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