| Title： |
Taiwan Stock Exchange Corporation Rules Governing Review of Securities Listings(2008.05.08) |
| Date： |
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Article 11
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Where an issuing company applies for initial listing of its common stock or various preferred stock it shall allocate a percentage, as specified by this Corporation, of the total number of shares as stated in its listing application documents and after deducting the number of shares to be retained for subscription by employees as specified by acts and regulations in connection with the Company Act, retain a securities underwriter to offer the balance of such allocated shares in full for sale to the public before the shares are listed, by means of a cash capital increase through a new share issue in accordance with the provisions of Article 71, paragraph 1, of the Securities and Exchange Act concerning underwriting of securities on a firm commitment basis. Provided, that a state-owned enterprise or an applicant under Article 6 or Article 6-1 may carry out underwriting with stock already publicly offered and issued by the company.
The total number of shares to be allocated by the issuing company for public sale under the preceding paragraph shall be calculated by the method specified in Article 10, paragraph 2, and shares added during the period from the listing application date until the listing date shall be included in the calculation; provided, shares allocated for public sale shall be confined to shares of publicly offered and issued common stock.
The requirements of paragraph 1 regarding a percentage of shares to be allocated shall not apply to a company applying for exchange-listing if the company's shares are already listed for trading on the GreTai Securities Market in accordance with Article 3 of the GreTai Securities Market Rules Governing Review of Securities Traded on Over-the-Counter Markets and the company, because of non-compliance with the equity ownership dispersion standards in these Rules, must retain a securities underwriter to conduct a pre-listing public sale of shares to deal with the amount of the shortfall in equity ownership dispersion. However, if the amount of the shortfall is less than 2 million shares or 1 percent of paid-in capital, the company may be exempted from the public sale requirement, as long as it achieves compliance with equity ownership dispersion standards before its shares are listed on the central exchange for trading.
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