Funds raised through initial public offerings (IPOs) in Taiwan reached NT$4.501 billion (US$151.86 million) in the first half of this year, down from NT$12.06 billion over the same period last year, while the number of IPOs fell from 19 to 10, multinational accounting firm Ernst & Young said.
The COVID-19 pandemic has prompted many enterprises to put their fundraising plans on hold and dampened their willingness to go public, Ernst & Young said on Tuesday last week.
The local main board saw four IPOs in the six-month period, down from six a year earlier, with the funds raised plunging 82.1 percent year-on-year, while the over-the-counter (OTC) market saw the number of IPOs drop from 13 to six and the funds raised fall 12.1 percent, Ernst & Young said.
Among the 10 IPOs that did go ahead, proximity sensor maker Sensortek Technology Corp (昇佳電子) was the most successful, raising NT$2.14 billion on the OTC market on June 8, the firm said.
The high-tech industry completed five IPOs on the local equity market and raised a total of NT$2.75 billion in the first half, Ernst & Young said.
On the main board, the electric and machinery industry accounted for the majority of new listings, and on the OTC market, the semiconductor industry took the lead, it said.
Taiwan is not the only market to see a plunge in IPOs.
During the January-to-June period, 412 companies listed their shares worldwide, a drop of 95 from a year earlier, while the funds raised declined 12 percent to US$66.7 billion, Ernst & Young said.
Looking ahead, concerns over the COVID-19 pandemic are expected to continue to affect the IPO market in Taiwan and market uncertainty is unlikely to recede until the fourth quarter, the firm said.
Other factors such as the US recession, trade friction between Washington and Beijing, and the slowdown of the global economy are also factors that might undermine IPO activities in the second half of this year, it said.
WIN-WIN SITUATION: Customers, products and client portfolios of the companies are complementary, allowing for inroads into new fields, Chipbond’s chairman said Chipbond Technology Corp (頎邦) yesterday said it plans to acquire about a 31 percent stake in Orient Semiconductor Electronics Ltd (華泰電子) in a cash-and-share deal, aiming to make inroads into flash memory-chip packaging. Chipbond said the strategic alliance would open the door for the company to enter the flash memorychip packaging and testing market, which is a new business for the Hsinchu-based company. Chipbond primarily provides testing and packaging services for driver integrated circuits that are used in flat panels. BUSINESS OPPORTUNITY “Except for flash memory chips, we also saw a lot of new businesses that require the technologies of Chipbond or Oriental
MOMENTUM: While next-generation smartphones feature more semiconductors and vendors increase their inventory, the chipmaker remains focused on production in Taiwan Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the sole chip supplier for Apple Inc’s iPhone series, yesterday raised its revenue forecast again, saying that robust demand for 5G smartphones and high-performance-computing (HPC) would help boost revenue this year by 30 percent in US dollar terms. Three months ago, the chipmaker estimated that revenue would grow 20 percent this year from last year, reaching its long-term growth target of 15 to 20 percent annually. “Moving into the fourth quarter, we expect our growth in revenue to be supported by strong demand for our industry-leading 5-nanometer technology driven by 5G smartphone launches and HPC-related applications,”
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
India’s COVID-19 economic gloom turned into despair this week, on news that its per capita GDP for this year might be lower than that of Bangladesh. “Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, said on Twitter after the IMF updated its World Economic Outlook. “But it’s shocking that India, which had a lead of 25% five years ago, is now trailing.” Ever since it began opening up the economy in the 1990s, India’s dream has been to emulate China’s rapid expansion. After three decades of persevering with that campaign, slipping behind Bangladesh hurts