US firms urged to go public in Taiwan

The Taiwan Stock Exchange (TWSE), GreTai Securities Market (GTSM), and the Taiwan Trade Center in San Francisco, recently hosted a seminar on how to list a company publicly in Taiwan. The July 21st event at the Hyatt Regency Hotel, Santa Clara, California was well attended with more than 200 businesspeople and professionals working in the fields of information technology, venture capital, finance, accounting and law.

Addressing the seminar aimed at facilitating a company’s initial public offering (IPO), were Thomas J.C. Chen, director general of the Taipei Economic and Cultural Office in San Francisco, Dr. Jih-chu Lee, vice chairperson of the Financial Supervisory Commission within Taiwan’s Executive Yuan, Bret Lee, the executive director of the Taiwan Trade Center, San Francisco, and leaders of accounting firms and law offices from Taiwan.

Delegates were introduced to the investment environment in Taiwan through an informational film, along with various speakers. Mr. William Kao, founder and president of CARES, Clean Technology Institute, talked about the island’s clean energy sector and the associated investment opportunities. The advantages of Taiwan’s capital markets were also highlighted, and details of the regulations pertaining to foreign businesses applying for IPO in Taiwan, and the operational property transaction service platform provided by GTSM, were discussed.

The Taiwan government has tried to create a favorable investment environment by providing preferential financial incentives and tax exemptions to make the island more attractive to international companies. In the development of key industries, the government continues to promote research and development in sectors such as digital content, biotechnology, and green technology, in addition to the mainstays of the semiconductor industry and the liquid crystal display sector.

Bret Lee said the Taiwan External Trade Development Council (TAITRA) has sponsored many seminars on investment and industrial development through its overseas offices. On this occasion Lee noted his pride in working with the TWSE and GTSM to introduce the new trends and advantages of Taiwan’s capital market to businesses in Silicon Valley in the hope of reinforcing their confidence about investing in or setting up business in Taiwan.

Lee pointed out Taiwan’s advantages with a complete supply chain of upper and downstream sectors, a higher price-earnings ratio to tech firms, all of which make it easier for foreign companies to raise capital in Taiwan.

Samuel J.S. Hsu, president of the TWSE said the exchange has cooperation agreements with other international stock exchanges, such as the Hong Kong Stock Exchange. Taiwan’s exchange will also increase cooperation and contact with the Shanghai Stock Exchange and the Shenzhen Stock Exchange to make Taiwan a capital market and not just a platform for raising money for Asian technology businesses.

Daung-Yen Lu, former chairman of GTSM, sees this as a good time for US firms to think about going to Taiwan because of the signing of the memorandum of understanding on financial supervision, and the proposed economic cooperation framework agreement (ECFA) between China and Taiwan due to be in place later this year.