Getting listed on the stock exchange market
This refers to a company that has been approved by the stock exchange and is publicly traded and listed in the centralized market is a listed company. In order to be listed on the stock exchange market, a company must meet the requirements of the stock exchange, including the number of years of establishment, amount of capital, and profitability.
- Benefits to the company after getting listed on the stock exchange market.
- The Company can raise additional capital through a public offering of its shares.
- The Company can improve its international image and trust, and create liquidity for its shares.
- Restrictions on the company after getting listed on the stock exchange market.
- The Company’s financial information must be publicly disclosed and confidentiality is lost.
- The Company must submit reports to the stock exchange and regulatory authorities on an ongoing basis.
Getting listed on the over-the-counter market
This refers to those companies that have been publicly issued and are traded in over-the-counter market.
To be traded in over-the-counter market, a company must meet the requirements of the Over-the-Counter service of the Taipei Exchange (“OTC”). Compared to a company listed on the stock exchange, the requirements for an OTC company are less stringent, requiring fewer number of years of establishment, less capital, and less profitability.
The impact on a company after being listed on the over-the-counter market is the same as that of a company listed on the stock exchange market.
Emerging Stock
This refers to the common stock of the public offering company that has applied for the listing and the OTC counseling contract, and has been approved by the OTC before being listed on the OTC market and traded at the business office of the securities firm.
Emerging stocks are traded through bargaining, and are thus less liquid.
Go Incubation Board for Startup and Acceleration Firms
Through the OTC, we have set up a public equity fundraising platform, the Go Incubation Board for Startup and Acceleration Firms, to provide a platform for small and medium-sized enterprises to raise capital, allowing them to receive capital from professional investors and the general public in return for their equity. In addition to raising capital, the OTC also helps micro-innovation enterprises grow through a public joint counseling mechanism.
Comparison of application requirements of stocks listed on the stock exchange and on the OTC market
Item
Stock listed on OTC market
Stock listed on stock exchange
Number of years of establishment
Established in accordance with the Company Act and registered for at least two years.
Established in accordance with the Company Act and registered for at least three years.
Profitability
If the ratio of net income before income tax to equity for the most recent year is 4% or more and there is no accumulated deficit in the financial statements for the most recent fiscal year; or if the ratio is 3% or more for both of the most recent two years; or if the average ratio is 3% or more for the most recent two years and the profitability of the most recent year is better than that of the previous year. Profitability in the preceding financial statements does not include the effect of net income (loss) of noncontrolling interests. However, the aforementioned net income before income taxes shall not be less than NT$4 million for the most recent fiscal year.
The pre-tax net income of the financial statements meets one of the following criteria, and there is no accumulated loss in the final accounts for the most recent fiscal year. (1) The ratio of net income before income tax to equity in the annual financial statements for the last two fiscal years is at least 6%. (2) The ratio of net income before tax to equity in the annual financial statements for the two most recent fiscal years is at least 6% on average, and the profitability of the most recent fiscal year is better than that of the previous fiscal year. (3) The ratio of net income before income tax to equity in the annual financial statements for the last five fiscal years is at least 3%.
Shares diversification
The number of registered shareholders other than corporate insiders and such insiders holding more than 50% of the shares is not less than 300, and the total number of shares held by them in aggregate represents more than 20% of the total number of shares issued or more than 10 million shares.
The number of registered shareholders is at least 1,000 and the number of registered shareholders other than corporate insiders and such insiders holding more than 50% of the shares is not less than 500, and the total number of shares held by them is at least 20% of the total number of shares issued or at least 10 million shares.
Source: OTC Taipei Exchange
Application Criteria and procedures
- Application Criteria and Process for stocks listed on the stock exchange
Please refer to the Taiwan Stock Exchange for application criteria, procedures, and other details.
- Application Criteria and Process for OTC stocks and emerging stocks
Please refer to the OTC Taipei Exchange for application criteria, procedures and other details.
Information inquiry about stocks listed on the stock exchange and on the OTC market
Please refer to the Market Observation Post System for major stock market news and updates.
For information on individual company, please visit the Industry Value Chain Information Platform (*Only available in Chinese).
OTC Taipei exchange public information
Loading, please wait