Taiwan FSC plans relaxation of share issuance rules
Under a new mechanism, listed companies could obtain approval for several batches of share issues at once without having to apply individually.
Taiwan’s Financial Supervisory Commission (FSC) is said to be drafting rules to help speed up share issuances by listed companies and improve the efficiency of local capital markets.
Currently, it typically takes subscribers about a month to assess a listed company’s issuance plan, an average of 17 additional days to review issuance requests, and about 1.5 months for negotiations with shareholders who wish to acquire. new actions.
According to Taipei Hours, the FSC plans to allow listed companies to file applications covering multiple issues scheduled within two years.
Under the proposed mechanism, a company would have to report the total number of shares it plans to issue and the total amount of funds it plans to raise over the next two years.
Companies would be able to obtain approval for the issuance of multiple lots of shares without having to individually apply for each issue.
The mechanism is expected to shorten issuance procedures from three months to one and a half months and increase the efficiency of the local capital market.
The new mechanism would only apply to listed companies whose operating scales and capital expenditures exceed a certain limit and those whose product development takes longer, such as semiconductor and biotechnology companies.
FSC expects to complete the drafting of the plan in the fourth quarter.