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.
NOT ALONE
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.
ELECTRONICS BOOST: A predicted surge in exports would likely be driven by ICT products, exports of which have soared 84.7 percent from a year earlier, DBS said DBS Bank Ltd (星展銀行) yesterday raised its GDP growth forecast for Taiwan this year to 4 percent from 3 percent, citing robust demand for artificial intelligence (AI)-related exports and accelerated shipment activity, which are expected to offset potential headwinds from US tariffs. “Our GDP growth forecast for 2025 is revised up to 4 percent from 3 percent to reflect front-loaded exports and strong AI demand,” Singapore-based DBS senior economist Ma Tieying (馬鐵英) said in an online briefing. Taiwan’s second-quarter performance beat expectations, with GDP growth likely surpassing 5 percent, driven by a 34.1 percent year-on-year increase in exports, Ma said, citing government
‘REMARKABLE SHOWING’: The economy likely grew 5 percent in the first half of the year, although it would likely taper off significantly, TIER economist Gordon Sun said The Taiwan Institute of Economic Research (TIER) yesterday raised Taiwan’s GDP growth forecast for this year to 3.02 percent, citing robust export-driven expansion in the first half that is likely to give way to a notable slowdown later in the year as the front-loading of global shipments fades. The revised projection marks an upward adjustment of 0.11 percentage points from April’s estimate, driven by a surge in exports and corporate inventory buildup ahead of possible US tariff hikes, TIER economist Gordon Sun (孫明德) told a news conference in Taipei. Taiwan’s economy likely grew more than 5 percent in the first six months
SMART MANUFACTURING: The company aims to have its production close to the market end, but attracting investment is still a challenge, the firm’s president said Delta Electronics Inc (台達電) yesterday said its long-term global production plan would stay unchanged amid geopolitical and tariff policy uncertainties, citing its diversified global deployment. With operations in Taiwan, Thailand, China, India, Europe and the US, Delta follows a “produce at the market end” strategy and bases its production on customer demand, with major site plans unchanged, Delta president Simon Chang (張訓海) said on the sidelines of a company event yesterday. Thailand would remain Delta’s second headquarters, as stated in its first-quarter earnings conference, with its plant there adopting a full smart manufacturing system, Chang said. Thailand is the firm’s second-largest overseas
SUPPLY RESILIENCE: The extra expense would be worth it, as the US firm is diversifying chip sourcing to avert disruptions similar to the one during the pandemic, the CEO said Advanced Micro Devices Inc (AMD) chief executive officer Lisa Su (蘇姿丰) on Wednesday said that the chips her company gets from supplier Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would cost more when they are produced in TSMC’s Arizona facilities. Compared with similar parts from factories in Taiwan, the US chips would be “more than 5 percent, but less than 20 percent” in terms of higher costs, she said at an artificial intelligence (AI) event in Washington. AMD expects its first chips from TSMC’s Arizona facilities by the end of the year, Su said. The extra expense is worth it, because the company is