A domestic issuer that applies for the listing of stocks at the TIB must comply with the government’s industrial development strategies, have key core technologies and the ability to innovate or have an innovative operational model, and should meet the following qualifications:
A foreign issuer that applies for the listing of stocks at the TIB must meet, in addition to the requirements in the subparagraphs 2 to 6 of the preceding paragraph, the following qualifications:
- Years of establishment: Has been around for at least two years since its incorporation under the Company Act at the time of application for listing.
- Has issued the shares of common stocks for a total value of more than NT$100 million and has issued more than 10 million shares at the time of application for listing.
- Market value and financial standards: Must meet one the following standards at the time of application for listing:
- Market value is more than NT$1.5 billion, operating revenues for the most recent fiscal year are not less than NT$150 million and the applicant must prove it has the working capital sufficient for 12 months after listing in the market.
- For an applicant doing business in the biotechnology and pharmaceutical industry, its market value is more than NT$3 billion, and it must prove it has not less than 125% of the working capital required for 12 months after listing in the market. If an applicant is developing new medicine, its core products must have passed stage 1 of a clinical trial.
- Market value is more than NT$4 billion, and the applicant must prove it has not less than 125% of the working capital required for 12 months after listing in the market.
- Dispersion of share ownership: The number of registered shareholders is 50 or more. Excluding company insiders and any juristic persons in which such insiders hold more than 50 percent of the shares, registered shareholders hold more than 5% of the total issued shares, or at least 5 million shares.
- An applicant with income from dining and beverage services exceeding 50% of its total operating revenues in the most recent fiscal year must meet the requirements in the following items:
- Establish a laboratory to engage in self-inspection.
- Deliver the raw materials, semi-finished products and finished products whose inspection is outsourced, to a laboratory or inspection institution certified or accredited by the Ministry of Health and Welfare, Taiwan Accreditation Foundation or an institution engaged by the Ministry of Health and Welfare, for inspection.
- Request a reasonable opinion from an independent specialist on its food safety monitoring plan, inspection cycle, items for inspection etc.
- Recommended by 2 or more securities underwriters.
The TWSE will agree to list its stock of a domestic issuer or a foreign issuer applying for the listing of its stock at the TIB in the preceding two paragraphs only if the value of the number of the securities to be listed and available for trading multiplied by the offering price for the price at which the security opens on its first day in the initial public offering has met the minimum requirement on the market value applicable to its application.
- Meet the application regulations under the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, provided that if the people, juristic persons, group or other institutions directly or indirectly own shares or invest in the issuer for more than 30% of its value, or have control over the issuer, it must obtain an approval from the competent authority on a case-by-case basis.
- Years of establishment: The applicant or any of its subordinate companies must have 2 or more years of business records.
- The inspection institution under item B of subparagraph 5 of the preceding paragraph may be replaced by a laboratory or inspection institution certified by the local competent authority, international certification institution or an institution appointed by its competent authority.
A recommending securities underwriter should issue an evaluation opinion on the requirements on application for listing, i.e. compliance with the government’s industrial development strategies, key core technologies and the ability to innovate or an innovative operational model, in the first paragraph.
The core products in item B of subparagraph 3 of paragraph 1 means the biotechnological and pharmaceutical products that are the focus of a domestic issuer or foreign issuer in its engagement in development, application and commercialization of new drugs at the time of application for listing.
Article 28-2, paragraph 1 applies mutatis mutandis to the definition of securities underwriter in subparagraph 6 of paragraph 1.
Financial reports as referred to in this chapter shall be governed mutatis mutandis by Article 7, paragraphs 1 and 2 in the case of a domestic issuer, or by Article 28-3, paragraphs 3 and 4 in the case of a foreign issuer.