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Article 20
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An investment holding company applying for listing of its stock may apply only as a professional investment company and only with the purpose of controlling the business operations of other companies, and shall be approved for the listing of its stock if it meets the requirements of the following subparagraphs:
- Years of incorporation: Three full years have elapsed following registration of incorporation, or the years of actual operation of any of its held companies exceed three years.
- Equity: The net worth for the most recent fiscal year reaches NT$1 billion or more.
- Profitability: The ratio of net income before tax to net worth as stated on the financial report for each of the most recent 2 fiscal years reaches 3 percent or higher.
- Dispersion of equity ownership: The standard of Article 4, subparagraph 4 is met.
- The company does not engage in any business other than investment.
- The company shall have two or more held companies, and the held companies may not be professional investment companies and may not hold shares of the applicant company.
- At least 70 percent of the operating income in the financial reports shall come from the held companies.
- The sum total of the book value of its investment in the held companies shall equal 50 percent or more of each of its equity-method investment and net worth, as stated in the parent company only financial report.
- The company has not engaged in any borrowing or lending of funds with a non-financial institution.
- The ratio of net worth to total assets in the financial report for the most recent fiscal year shall reach one-third or more.
A held company shall mean any of the following:
- An invested company of which an investment holding company directly holds more than 50 percent of the issued voting shares or has made a capital contribution of more than 50 percent.
- An invested company of which an investment holding company through its subsidiaries indirectly holds more than 50 percent of the issued voting shares or has made a capital contribution of more than 50 percent.
- An invested company of which an investment holding company directly, and indirectly through its subsidiaries, holds more than 50 percent of the issued voting shares or has made a capital contribution of more than 50 percent.
- A company of which an investment holding company directly or indirectly elects or appoints more than half of the directors for the board of directors.
If an investment holding company applying for listing of its stock has a net worth for the most recent fiscal year reaching NT$800 million or more, and its held company or companies have successfully developed products or technology that contribute 50 percent of its total operating revenues, and the products or technology have been successfully developed and are marketable, and the central competent authority for the relevant industry has provided an unequivocal opinion stating that such company or companies are technology enterprises, it may be exempted from the application of paragraph 1, subparagraphs 1 and 3.
If the held company is required to be a professional investment company because the investment holding company has invested via a third location, it may be exempted from application of the provision of paragraph 1, subparagraph 6 that a held company may not be a professional investment company.
Notwithstanding that an investment holding company applying for the listing of its stock meets the listing criteria set forth in these Rules, the TWSE shall disagree to its listing if the circumstance in Article 9, paragraph 1, subparagraph 8 applies to any of its held companies, and the TWSE may disagree to its listing if any of the circumstances in Article 9, paragraph 1, subparagraphs 1, 3, 4, 6, or 12 applies to any of its held companies and the TWSE deems the listing inappropriate.
A held company more than 70 percent of whose shares are held by an investment holding company that is already domestically listed on the TWSE (or GTSM) may not apply for domestic TWSE listing.
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