IPO activity next year expected to remain strong: EY

• By Chen Cheng-hui / Staff reporter

Taiwan’s initial public offerings (IPO) activity is expected to remain strong next year following a stellar showing this year, as artificial intelligence (AI) and the technology supply chain continue to support Taiwanese stocks, Ernst & Young (EY) Taiwan said yesterday.

“Despite the uncertainties in the global political and economic landscape, Taiwan’s economy continues to demonstrate strong resilience. With the increasing demand for smart applications and related technologies, coupled with Taiwan’s chip technology advantage, the prospects for Taiwan’s IPO market next year remain promising,” EY Taiwan assurance services leader James Huang (黃建澤) said in a statement.

There were 70 IPO deals on the Taiwan Stock Exchange and Taipei Exchange markets this year, up from 65 last year, EY Taiwan said.

Together, this year’s IPO’s raised NT$105.07 billion (US$3.33 billion), an increase of NT$47.5 billion, or 82.51 percent, from NT$57.57 billion last year, it said.

Proceeds from IPOs have broken records for two consecutive years, with this year’s result signaling a continued recovery in the nation’s capital markets from 2023, it said.

Most IPO deals this year were in the semiconductor sector, followed by the biotechnology, medical and electronics sectors, EY Taiwan said.

There were 31 IPOs on the Taiwan Stock Exchange this year, down from 35 last year, raising a combined NT$84.55 billion, up 98 percent year-on-year, data provided by the consultancy firm showed.

Taichung-based Hon Precision Industry Inc (鴻勁精密), a supplier of chip test handlers used in advanced chip-on-wafer-on-substrate packaging equipment, had the largest IPO at NT$34.47 billion, accounting for 40.77 percent of the overall amount on the Taiwan Stock Exchange, EY Taiwan said.

Hsinchu County-based Heron Neutron Medical Corp (禾榮科技), which develops accelerator-based neutron source technology and clinical applications for boron neutron capture therapy technology, was second, raising NT$10.85 billion, or a 12.84 percent share, it added.

On the Taipei Exchange, the over-the-counter market gained 39 new listings this year, up by nine compared with last year, the data showed.

The listings raised a combined NT$20.52 billion, an increase of NT$5.66 billion, or 38.12 percent, from the previous year, the data showed.

Taoyuan-based semiconductor special chemicals supplier Advanced Echem Materials Co (新應材) topped other new listings on the Taipei Exchange by raising NT$5.73 billion, followed by Hsinchu City-based AblePrint Technology Co (印能科技), which specializes in key equipment used in advanced chip packaging technology, with NT$3.08 billion in IPO proceeds, the data showed.

Globally, IPO deals reached 1,293 this year, up 4.27 percent year-on-year, and raised a combined US$171.8 billion, a 39 percent increase from last year, an indication of a recovery in investor confidence, EY Taiwan said.

Europe, the Middle East, India and Africa together saw the highest number of new listings this year, accounting for 42 of the total, it said.

The Asia-Pacific region made up 43 percent of the total funds raised, making it the largest source of funding globally due to the strong IPO activity in Hong Kong and a surge in Chinese companies listing in Hong Kong, it added.