Taiwan’s initial public offering (IPO) market expanded by double-digit percentage points this year and should continue to pick up next year, led by technology and biotechnology players, Ernst & Young Taiwan said yesterday.
A total of 45 firms debuted on Taiwan’s capital markets and raised NT$35.73 billion (US$1.17 billion), up 60.7 percent and 11.35 percent respectively from last year in spite of deep market corrections, EY Taiwan said.
In comparison, global IPO deals tumbled 45 percent to 1,333, while the capital they raised plunged 61 percent to US$179.5 billion, it said.
China and Hong Kong together contributed 492 IPO cases and raked in US$101 billion, accounting for 37 percent of total deals and 56 percent of the capital raised, EY Taiwan said.
As of yesterday, the Taiwan Stock Exchange had welcomed 20 firms, which raised NT$27.76 billion in capital, up 11.2 percent year-on-year, it said.
Image sensor provider VisEra Technologies Co (采鈺), a spinoff of Taiwan Semiconductor Manufacturing Co (台積電), raised NT$6.74 billion, accounting for 24.7 percent of the overall sum, EY Taiwan said.
Another 25 companies joined the Taipei Exchange and raised NT$7.96 billion in capital, the consulting firm said.
Payment services provider Green World FinTech Service Co (綠界科技) ranked first by raising NT$1.87 billion in capital, accounting for 23.43 percent of the total, EY Taiwan said.
Technology and biotechnology firms dominated the IPO market this year and would continue to be the growth drivers next year, as local firms enjoy competitive edges in these fields, it said.
Taiwan’s semiconductor industry possesses advanced manufacturing processes, and has sought to stay competitive and diversify investment risks by expanding production bases abroad, EY Taiwan said, adding that the effort would require talent grooming and training.
In addition, companies look to reduce the negative impact of climate change through technological transformation, a trend that would lend further support to semiconductor and electronic component suppliers, it said.
As for biotechnology and medical firms, the public and private sectors are keen to support the development of regenerative and precision medicine, which could help them grow into important players, it said.
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