Local firms wooed to take up Taiwanese listing

Singapore firms looking to raise additional funds can consider listing on the Taiwanese market, a business association has suggested.

The president of the Association of Small and Medium Enterprises, Mr Chan Chong Beng, said on Wednesday that the listing proceeds could be used "for expansion to regional markets, or research and development of new product ranges".

Taiwan offers firms two platforms for firms to go public: the main Taiwan Stock Exchange as well as the GreTai Securities Market (GTSM).

So far, six local companies have listed on the GTSM, including furniture manufacturer Scanteak, interior fittings maker Redwood Group and equipment leaser and seller JP Nelson Holdings.

About 200 representatives of local businesses spent their Wednesday afternoon learning about the unique features of listing on the GTSM.

For example, the GTSM allows over-the-counter trading, where financial instruments such as stocks and bonds are traded directly between two parties.

This is unlike exchange trading, which most investors are more familiar with, and which is done through a centralised stock exchange.

The bulk of the 646 companies on the GTSM are small and medium enterprises (SMEs) and those in the technology and innovation field.

Typically, financial institutions and funds make up most of the day's trades on a stock exchange. But in the case of GTSM, 70 per cent of its traders are retail investors.