The nation’s initial public offering (IPO) activity would remain buoyant in the second half of the year, after a rapid pickup in the first half, judging by the number of deals and money raised, consultancy firm Ernst & Young Taiwan (EY Taiwan) said in a semi-annual report released on Thursday.
The first six months saw 27 IPO deals at the Taiwan Stock Exchange (TWSE) and Taipei Exchange (TPEX) markets and together they raised NT$18.4 billion (US$568.78 million), EY Taiwan said, adding that the amount raised more than doubled compared with the same period last year.
The robust showings came even though the global number of IPOs shrank 15 percent from a year earlier to 532 and the money they raised fell 17 percent to US$51.7 billion, EY Taiwan said in the report.
Photo: Clare Cheng, Taipei Times
The markets for Hong Kong and China’s A-shares fared worse, as they reported only 72 IPOs, which raised US$6.2 billion, it showed.
The data represented a decline of 64 percent and 81 percent by measure of deals and funding respectively.
Biotechnology and tech companies underpinned Taiwan’s capital markets and would continue to lend support in the second half, EY Taiwan said.
The mainboard gained 16 new listings that raised a total of NT$12.22 billion, or an increase of seven deals and NT$5.74 billion from a year earlier, it said.
Taichung-based sports shoemaker Lai Yih Group (來億) had the largest IPO with NT$3.3 billion, accounting for 27 percent of the overall amount, it said.
Yunlin-based SuperAlloy Industrial Co (巧新), which supplies forged wheels for major automobile manufacturers including Tesla, Ford and Toyota, was second, raising NT$1.72 billion, or a 14.08 percent share, it added.
The Taipei Exchange added 11 listings, which bagged NT$6.19 billion combined, a drastic increase of 252.33 percent from a year earlier, it said.
Among them, drug maker Alar Pharmaceuticals Inc (昱展) raised the most money at NT$1.68 billion, followed by Jiu Han System Technology Co’s (巨漢) NT$.102 billion, it said.
Additionally, there were 28 emerging stock listings, dominated by firms from biotechnology, information services and industry sectors, it said.
Taiwan’s IPO activity had to do with eager capital inflows to local shares, EY Taiwan said, adding that foreign fund inflows amounted to NT$379 billion last month alone, as investors at home and abroad sought to take part in the artificial intelligence boom.
That explains why the TAIEX has repeatedly made records in recent months, EY Taiwan said.
Investor zeal would be sustained given that 20 firms have filed to list in the TWSE or the TPEX, the consultancy said.
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