GTSW's incubation board to open up to investors on Jan. 10
January 2, 2014, 12:14 am TWN
TAIPEI--The GreTai Securities Market (GTSM)'s new incubation board, which aims to help small-sized companies raise funds, will open for investment on Jan. 10, the exchange announced Wednesday.
The GTSM said the incubation board will be launched on Jan. 3, with 19 companies disclosing information about their fundraising activities, and investors will have to wait at least five business days before they can pour funds into the enterprises listed.
Patterned after Hong Kong's Growth Enterprise Market, Singapore's Catalist board and London's AIM board, the incubation board is aimed at helping fast-growing start-ups gain access to funding, according to the GTSM.
GTSM President Lee Chi-hsien has previously said that the start-ups listed on the incubation board are developing creative ideas with high potential but have found it difficult to find funding for expansion.
The 19 companies to be registered on the incubation board on Jan. 3 will largely consist of cultural and creative enterprises, farming, forestry and fishery businesses and companies from the biotech and electronics sectors, according to the GTSM.
The GTSM said these companies have been recommended by several government agencies and industrial institutions, such as the Small and Medium Enterprise Administration, the Ministry of Culture, the Council of Agriculture, and the Industrial Technology Research Institute.
70 Small Businesses Expected to Be Listed in 2014
They will include green energy technology firm Neo-Optic Tek, multimedia platform provider Fevolution Innovation Inc., King's Ground Biotech Co., and J.S. Power Co., which provides batteries for electric motorbikes and 3C products, the GTSM added.
The exchange said its goal is to have 70 small businesses registered on the incubation board by the end of this year.
The incubation board will serve only as a venue for raising funds rather than as a platform for trading shares, the exchange stressed.
It said companies registered on the incubation board must have paid-in capital of NT$50 million or less and will be allowed to raise up to NT$15 million (US$500,000) a year in funds through the new mechanism.
As of the end of July, Taiwan had 390,000 companies with paid-in capital of between NT$1 million and NT$10 million, accounting for 64 percent of all local enterprises. Another 110,000 domestic companies are capitalized at between NT$10 million and NT$50 million, making up 18 percent of all local enterprises, the GTSM said.
The exchange said it will activate a special area on its website on Jan. 3 to provide investors with information about companies registered on the incubation board.