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Taiwan regulator allows VC firms to list domestically

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Taiwan’s Financial Supervisory Commission (FSC) has issued guidelines for Taiwan-based venture capital firms to pursue onshore IPOs.

In addition to the general requirements that apply to all listing applicants, such as minimum periods of incorporation and profitability as well as diversified ownerships, VC firms must meet additional five criteria, the FSC said in a statement.

Candidates are only permitted to participate in venture capital investments approved by the regulators, not other businesses; they must have paid-in capital of NT$2 billion ($60 million); and they are required to issue at least 100 million common shares during the IPO.

In addition, they are unable to hold more than 30% of the voting rights of a publicly-traded company in Taiwan, and individual investments must not exceed 20% of the total assets of the target company. Moreover, a GP's total deployed capital over the most recent two financial years should account for at least 60% of its total assets.

According to local media, there are about 10 Taiwanese venture firms could meet the listing requirement. Hutong Group, which is from Taiwan but listed in Singapore, is expected to go private and re-list domestically.

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