Cultivate Your Business Growth By Listing in Taiwan

Transcription

1 Cultivate Your Business Growth By Listing in Taiwan July, 2015 Taiwan Stock Exchange

2 Outline Why Taiwan Matters? Who have listed on TWSE? What are the benefits of IPO in Taiwan? What is the IPO process in Taiwan? Q&A 1

3 Why Taiwan Matters? Gateway to Great China Market! Taiwanese are the foreigners who understand the Chinese best, and also the Chinese who understand the foreigners best. (European Chamber of commerce Taipei (ECCT),2012 report) 2

4 Key supplier in ICT industry! Why Taiwan Matters? China Industry Supply Chain Management! Innovation Supply Chain of ICT products Asean Countries 3 Taiwan

5 Product Why Taiwan Matters? Products Made by Taiwan Ranked No.1 in the World Market Share (Latest stat. figure) Product Market Share (Latest stat. figure) Notebook PC 89% Tablets 71% Motherboard 84% WLAN CPEs 80% Cable Modem 81% LCD Monitor 68% Optical Disk 73% Navigation Devices 64% Data Source: Industrial Development Bureau, Ministry of Economic Affairs 4

6 Who have listed on TWSE? Nearly 2000 listed companies, 987 billion Mkt Cap TWSE Taiwan Blue-Chips As of June listed Corp. (816 domestic, 45 foreign ) Mkt cap: USD 872 billion 24 TDRs, 21 ETFs, over 10,000 warrants TPEx Potential Growth Stocks 699 listed Corp. (672 domestic, 27 foreign) Mkt Cap: USD 87 billion 1 TDR, 1 ETF, over 3,000 warrants Emerging Market Small and medium enterprises 287 listed Corps. (281 domestic, 6 foreign) Mkt Cap: USD 28 billion GISA Small and private innovative companies Launched in Jan Over 60 registered Corps. GISA:Go Incubation Board for Startup and Acceleration Firms 5

7 Who have listed on TWSE? IPOs in Asia-Pacific are full of Vitality Rank by No. of IPOs Country No. of IPOs Funds Raised (US$ bln) 1 U.S U.K China South Korea H.K Australia Japan Canada India Taiwan Source: WFE database including non-members 6

8 Who have listed on TWSE? Successful Domestic IPO Case1 Successful Domestic IPO Case2 Semiconductor Giant 2330.TW Industry Sector: IC Operation Location: Taiwan Date of Listing : Sept Dual listing (ADR)in NYSE IPO Capital Pre IPO Book Value Unit: USD $ Mkt Cap 158 mil. 358mil. 119bn. Jump 332 times 7 3C Manufacturing Giant 2317.TW Industry Sector: 3C Operation Location: China, Taiwan, U.S. Date of Listing : June 1991 Pre IPO Asset Value Asset Value 1974 Num. of Employees Unit: USD $ 2015 Num. of Employees 251mil. 70.3bn. 10 >1mil. Jump 280 times

9 Who have listed on TWSE? Successful Foreign IPO Case Foreign Shares Unit: NTD/share Industry Sector Operating Location Pre-listing Book Value IPO Stock Price Case 1 Semiconductor US Case 2 Case 3 Biotech& Medical Care Electronic (other) Stock Price China US.& China +438% +86% +784% +123% % +171% Cluster Effect of Industry IPO Benefits at TWSE Gain Access to China Markets Reap Economies of Scale Diversify Funding Sources 8 Reevaluate Fair Value

10 Who have listed on TWSE? TWSE: The cradle of New Industrial Tycoons 6 Num. of Foreign listed companies Source: TWSE, June,

11 What are the benefits of IPO in Taiwan? Outstanding IPO Synergy Cash Flow People Flow Information Flow Business IPO Facilitate Fundraising Improve financial position Accelerate Capital Formation Identify Fair Value Enhance Visibility Cultivate Sustainable -Competitiveness Reputation Listing application Phase Expansion phase 10

12 What are the benefits of IPO in Taiwan? Cluster effect of IT industry TWSE Market Cap % by Sector Traditional Industries Plastics (6%) Oil, Elec, Steel, Chemical Cement, Rubber, Textile, Food, Automobile Finance and Insurance (14%) Others Tourism, Transportation, Biotech 14% 23% 10% Technology Semiconductors(24%) Computer & Peripheral Equip.(7%) Other Electronics(7%) 53% Electronic Parts/Components Electronic Products Distribution Information Services Communications and Internet Optoelectronics 11 Source: TWSE; as of Dec

13 What are the benefits of IPO in Taiwan? High-Tech % by Num. Amount of Fund Raising(U SD /million) High-Tech % by Fund Raised NEW IPOs of Foreign companies High-Tech All Diversified Funding Instruments! (SPO,GDR,ECB ) Founding Sources USD/million 252 IPO SPO GDR BOND

14 What are the benefits of IPO in Taiwan? Ideal Market for SME s floating shares Reasonable P/E Ratio Price Source: TWSE Reflect SME s Fair Value (Avg. Mkt. Cap $32 Mill.USD) Turnover Return Moderate Turnover Rate unit :% Source: TWSE Superior Dividend Yield unit:% Sources: Bloomberg, TWSE 13

15 What are the benefits of IPO in Taiwan? % Significant Presence of Global Investors Trading value generated by foreign investors(%) Mkt. value held by foreign investors(%) 14 Source: TWSE

16 What are the benefits of IPO in Taiwan? IPO in Taiwan is a WIN-WIN Solution!!! TWSE Intensify Capital Flows Expand Market Scale 15

17 What is the IPO process in Taiwan? Efficient Review and Application Process Pre-Listing Preparation Counseling Period 6 months Application of Listing 2~3 months After Passing Application Review 1~2 months Lead Underwriter Certified Public Accountant Taiwan s Lawyer Taxation Legal Issues Prospectus Internal Audit Document Review Listing Review Committee Approved by TWSE s Board of Directors Effective Registration Offering, Issuing and Underwriting Shares Centralized Custody of Shares Share Dispersion Application of Trading 16

18 What is the IPO process in Taiwan? Clear Listing Review Points Shareholder Protection Corporate Governance Financial Reporting Internal Control R&D Intellectual Property Regulation Compliance Competitive Niches Others 17

19 Conclusion IPO in Taiwan- Significant Synergies Growth Human Capital Funding Exposure Competitiveness Taiwanese-owned Companies Familiar with People, Race, Land Comeback and feedback Raise Fund Reflect Fair Valuation Foreign Companies Access to Great China Market Strategically Ally with Taiwanese Industry

20 Please refer to following linkage for further information

21 Disclaimer 1. Taiwan Stock Exchange ("TWSE") has taken all reasonable measures to ensure the accuracy and completeness of this document, it cannot guarantee that there is no omission or error in the information provided. 2. TWSE hereby declares that it shall not be liable for any loss that may result from reliance on the information provided in this document. 3. In the event of any discrepancies between this document and the regulations published by TWSE or competent authorities, the published regulations shall prevail. 4. More related statistics could be found at TWSE website. ( 20

22 Appendix

23 Item General Enterprise Technology Enterprise Duration of Corporate Existence 3 years Company Size Paid-in capital or net worth NT$ 600 million, OR Market cap NT$ 1.6 billion (approx. US$54 million) Profitability, Financial Requirement Shareholding Dispersion Appendix-IPO Criteria Accumulated earnings before Tax (EBT) for the most recent 3 years NT$ 250 million (approx. US$8 million), AND EBT for the most recent year NT$120 million (approx. US$4 million) The number of registered shareholders 1,000, AND The number of outside shareholders* 500, and their aggregate holding shares 20%, or 10 million shares. 1 year Paid-in capital or net worth NT$ 300 million, OR Market cap NT$ 800 million (approx. US$27 million) Net worth of the most current financial report 2/3 of the capital, AND Working capital is sufficient for 12 months after IPO. The number of registered shareholders 500, AND The aggregate holding shares by outside shareholders* 20%, or 5 million shares. *Outside shareholders, excluding company insiders and any juristic entities, mean shareholders other than directors, supervisors, managerial officers, shareholders holding more than 10% shares, and their spouses and minor children of all the above. 22

24 Appendix-IPO Criteria (cont d) Item General Enterprise Technology Enterprise Corporate Governance Consolidated Financial Report The foreign issuer shall install either an audit committee or supervisors: (1) Number of directors 5 (including 2 independent directors), and number of supervisors 3, OR (2) Number of directors 5 (including 3 independent directors), with an audit committee (comprising 3 independent directors). At least one independent director should be domiciled in Taiwan. Shall establish a remuneration committee. Audited financial statements compiled based on IFRSs recognized by the Taiwan Authority, US GAAP, or IFRSs. for most recent 3 years plus audited interim report in the year of filing. As Same as General Enterprise As Same as General Enterprise 23

25 Appendix-IPO Criteria (cont d) Item General Enterprise Technology Enterprise Underwriters Consulting Period Sponsorship Period At least 2 underwriters: one lead underwriter plus one or more colead underwriters Consulting period 6 months, OR Listing on emerging market 6 months 2 years (after listing) As Same as General Enterprise As Same as General Enterprise 3 years (after listing) Public Issuance Others Should complete the public issuance process before IPO. - As Same as General Enterprise Approval from the Industrial Development Bureau of Taiwan regarding the high-tech status of the applicant. 24

26 Appendix - Foreign Listings Foreign Primary Listings on TWSE - Breakdown Registered Nationality Location of Operations Taiwan H.K. 36 Philippines Singapore U.S. Categorized by Industry China 42 Vietnam U.S. Others Retail Trade, Electronic Machinery, Plastics, 22 Non High- Tech 23 High- Tech High-Tech Non High- Tech Source: TWSE, June