The Difference Between TWSE Listing, TPEx Mainboard Listing and Emerging Stock Companies in Taiwan
TWSE Listing, TPEx Mainboard Listing and Emerging Stock companies in Taiwan are all referring to companies with outstanding shares held by outsiders?investors. The main differences are the listing criteria and trading rules.
Emerging Stock company refers to the companies which shares are issued and traded in the emerging stock market, and neither is TWSE Listing nor TPEx Mainboard Listing. Before a company registers for TWSE or TPEx Listed, it must first register as an Emerging Stock company for 6 months or above and listed on the Emerging Stock Board. There are no restrictions on the company size, capital amount, duration of incorporate existence, profitability for the Emerging Stock company so far, as long as the company obtain recommendation from two or more brokers. Therefore, it is suitable for companies in their early stage and with unstable profitability.
TPEx Mainboard Listing company refers to companies which shares are issued and traded in Taipei Exchange OTC Market, mainly from emerging industries and SMEs. TWSE Listing company refers to companies which shares is traded through Taiwan Stock Exchange trade matching system. The TWSE listed stock is generally better than the others, in terms of capita amount, duration of incorporate existence and profitability.
The listing criteria for TPEx Mainboard Listing and TWSE Listing are considerably tighter. Please find a comparison as below:
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Item
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TPEx Mainboard Listing
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TWSE Listing
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Duration of Corporate Existence
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At least 2 completed fiscal year upon the registration under the Company Act
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At least 3 completed fiscal year upon the registration under the Company Act
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Paid-in Capital
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Over TWD 50Million
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Over TWD 600Million
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Profitability
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The ratio of income before tax to paid-in capital shall meet one of the following requirements, and the income before tax of the most recent fiscal year shall not be less than NT$4 million:
i) Most recent fiscal year: the ratio shall be more than 4%, and there shall be no accumulated deficit.
ii) The last 2 fiscal years: the ratio shall be more than 3% in each year; or the ratio shall average 3% over the 2 years and the ratio for the latest year shall be better than the one before.
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The ratio of income before tax to paid-in capital shall meet one of the following requirements, and there shall be no accumulated deficit in the most recent fiscal year:
i) The last 2 fiscal years: the ratio shall be more than 6% in each year.
ii) The last 2 fiscal years: the ratio shall average 6% over the 2 years, and the ratio for the latest year shall be better than the one before. iii. The ratio shall average 3% in the last 5 fiscal years.
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Dispersion of Share Ownership
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Excluding company insiders and any juristic persons in which such insiders hold more than 50 percent of the shares, the number of registered shareholders is at least 300, and the total number of shares they hold is 20 percent or greater of the total issued shares, or more than 10 million.
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The number of registered shareholders is 1,000 or more. Excluding company insiders and any juristic persons in which such insiders hold more than 50 percent of the shares, the number of registered shareholders is at least 500, and the total number of shares they hold is 20 percent or greater of the total issued shares, or at least 10 million.
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See also:
Increase of Independent Director Seat for Listed Company
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