Wednesday June 11 2025
News Source: Global Exchanges
Focus: Stock Exchange Regulation
Type: General
Country: Taiwan
On 9th June 2025, the Taiwan Stock Exchange (TWSE) announced that in response to the development of diversified capital structures in the market, and considering that it is relatively difficult for companies whose shares have no par value or whose par value is not NT$10 per share to meet the profitability threshold in their listing applications, thus causing an imbalance between such companies and companies with a par value of NT$10 per share, the TWSE has revised eight regulations, including the Rules Governing Review of Securities Listings, Supplementary Provisions to the Rules for Review of Securities Listings and Operating Rules of the Taiwan Stock Exchange Corporation with the key revision as follows:
The profitability threshold of issuing companies applying for domestic listing is a certain ratio of the pre-tax profit divided by the share capital. If the shares of an issuing company have no par value, according to paragraph 2, Article 156 of the Company Act, the proceeds from the shares should be fully capitalized; therefore, at the same issue price, the financial statements of a non-par-value share issuer will show a larger share capital amount than that of a NT$10-par-value share issuer.
The revised regulations will help enhance the inclusiveness of the capital market towards companies with different par values per share. In the future, the TWSE will continue to improve relevant regulations in response to the development of the capital market.
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