| US-based Integrated Memory Logic (IML), a company registered in the Cayman Islands, has become the first foreign company to trade on the Taiwan Stock Exchange amid Taiwan’s further liberalisation of its financial markets. The company, which began trading on 18 May 2010, is expected to raise approximately US$40 million in an initial public offering. Together with recent changes to the Taiwan Stock Exchange’s Listing Rules, which facilitate listings for high-tech companies, the inaugural listing reinforces Taiwan’s reputation as an international high-tech centre. Taiwan has produced some of the biggest and most competitive international high-tech companies, and it is anticipated that the jurisdiction will see an increasing number of foreign companies, led by high-tech firms, looking to the island’s bourses to raise capital.
Taiwan regulators opened the door to foreign company listings, including Taiwan Depository Receipts, after restrictions on investments and remittance to China were relaxed in July 2008. The relaxation of the rules was aimed in part to attract Taiwanese funds and companies that had shifted their businesses and focus to the mainland and the US, to return to their home market. According to data from the Taiwan Stock Exchange Corporation as of 17 May 2010, a total of 64 foreign companies have applied to list in Taiwan, of which over 75 percent are registered in the Cayman Islands. Given that dual submission is allowed, 56 foreign companies have submitted their applications to list on the Taiwan Stock Exchange, while 32 foreign companies intend to apply for a listing on the “over-the-counter” Gre-Tai Securities Market. Out of the 64 foreign companies, approximately 40 percent are from the high-tech industry. Maples and Calder acted as Cayman Islands counsel to IML on its listing on the Taiwan Stock Exchange. Commenting on IML’s trading debut, the firm’s joint managing partner, Christine Chang, said, “Taiwan has a well-established high-tech base and it will be a natural progression for high-tech firms to tap into a market that is familiar with the tech industry.” |
