Companies raise less with SPOs in first half

UNCERTAINTY: Many firms said that they postponed raising capital, as they did not know if new investments would be a good idea in light of the US-China trade spat

Taipei Times
Date: Jul 20, 2019
By: Kao Shih-ching  /  Staff reporter

In the first half of this year, local companies raised 16.52 percent less through secondary public offerings (SPO) than they did a year earlier, as trade tensions between the US and China have put a strain on new investments, the Financial Supervisory Commission (FSC) said on Thursday.

The NT$253.64 billion (US$8.17 billion) raised was the lowest in three years, compared with NT$271 billion in 2017 and NT$303 billion last year, FSC data showed.

An SPO is the sale of new shares by a company that has already made an initial public offering (IPO), Securities and Futures Bureau Deputy Director-General Tsai Li-ling (蔡麗玲) told a news conference.

The number of companies that conducted SPOs in the first six months dropped to 111, from 127 a year earlier, Tsai said, adding that 109 of the firms raised funds in Taiwan and two raised funds overseas.    [FULL  STORY]

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