DELISTING: Due to their low prices, investors have characterized these shares as ‘eggs and dumplings,’ and the new rule would remove such nonviable securities

Taipei Times
Date: Feb 28, 2019
By: Kao Shih-ching  /  Staff reporter

Tightened listing requirements for a company whose net asset value per share (NAVPS) is lower than NT$3 are expected to take effect in the second quarter, Financial Supervisory Commission (FSC) Chairman Wellington Koo (顧立雄) said yesterday.

NAVPS, calculated by dividing the net asset value by the number of issued shares, is an indicator of a firm’s financial position, as it shows how much a stakeholder owns in terms of the firm’s assets, the Taiwan Stock Exchange said.

In a bid to improve the quality of the local equity market, the commission approved the exchange’s proposal on Tuesday that any listed firm with a NAVPS lower than NT$3 should make improvements within three years or be delisted from the exchange, Koo told reporters at Legislative Yuan in Taipei.

Firms which accountants doubt can continue to operate without problems would also be subject to the new regulations, Koo said.    [FULL  STORY]