On the 20th, the Taiwan Stock Exchange (TWSE) convened its board meeting and approved three major resolutions. Among them was a revision to the rules concerning profitability requirements for companies applying for initial public offerings (IPOs) or public offerings of privately placed securities, specifically those with no par value or a par value per share not equal to NT$10. Under the new rule, net asset value will be used in place of paid-in capital, and the profitability ratios will be calculated at half the original rate.
One key agenda item involved amending three regulations: the "Criteria for Review of Securities Listings," the "Supplementary Provisions to the Criteria for Review of Securities Listings," and the "Operating Rules of the TWSE." The TWSE noted that companies with no par value or a per-share par value other than NT$10 may face greater difficulty meeting the profitability standards compared to NT$10 par value companies. To address this imbalance, and with reference to regulatory frameworks for public companies set by competent authorities, the board approved rule amendments allowing for net asset value to replace paid-in capital in profitability calculations, using a halved ratio. This change applies to IPOs and supplementary public offerings of privately placed securities.
The second resolution aims to enhance operational flexibility for securities firms by allowing the establishment of simplified branches and setting new guidelines for account opening by nationals without registered household residency in Taiwan. Accordingly, the board approved amendments to certain articles in the "Operating Rules of the TWSE" and Article 3 of the "Standards for Consignment Contracts of Securities Brokers." The revised rules aim to help securities firms expand their reach while safeguarding the rights of local nationals to open securities accounts, thus advancing the goal of inclusive finance. The revised regulations will take effect following official announcement.
The third resolution approved the listing application of CHT Security Co., Ltd., which has already publicly issued 36,345,000 common shares.
Resource: 申請IPO時面額非10元公司 證交所：獲利能力改以淨值計
