2021-11-01

Taiwan's Financial Supervisory Commission Announces New Fundraising Rules

Taiwan's Financial Supervisory Commission ("FSC") announced amendments to the Regulations Governing the Offering and Issuance of Securities by Foreign Issuers (外國發行人募集與發行有價證券處理準則) on 20 October 2021.
 
Currently, a listed firm must apply to the FSC for each issuance of new shares.  The proposed amendment would allow companies fulfilling certain criteria to file an application covering multiple issuances that will be made within a two-year period once the application is approved after the new rules take effect within two years of the new rules taking effect. 
 
On the application, the listed firm would report the number of shares to be issued and its two-year funding goal, adding that upon approval, the firm could issue multiple batches of shares without needing to apply for permission to issue each batch.
 
The amendment would only apply to companies fulfilling the following criteria: (1) listed companies with paid-in capital of more than NT$ 2 billion (US$ 71.59 million); (2) listed companies that have not been fined by the FSC for securities breaches within the previous three years; and (3) listed companies that have not had a fundraising application rejected by the FSC within the previous three years.
 
The amendment would provide to listed companies greater flexibility with respect to issuing shares.  Companies can be more agile, as they will not need to apply individually for each issuance.
 
It is estimated that the new amendment could benefit 1,245 companies, or approximately 72% of all listed companies in Taiwan.
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