More than 10 Singapore companies are expected to issue Taiwan depositary receipts this year, Liu Chung-ping, a partner with the law firm Jones Day, said July 19.
Liu added that more than 20 enterprises from the city state have shown an interest in issuing TDRs. Two have already asked Jones Day to provide legal services for TDR listings, said Liu.
According to Liu, the two enterprises in question are a sportswear fabric supplier and a cell phone company. They are scheduled to submit TDR applications to the Taiwan Stock Exchange Corp. by mid-August, he said.
The applications of the two firms are very likely to go through, according to Jones Day’s primary assessment, sources added.
Sources believe that the cell phone company being referred to is Z-Obee Holdings Ltd., which is already cross-listed in Hong Kong.
If this information is accurate, Z-Obee will become the first company to be listed in all three bourses. It will also become the first handset maker to have issued depositary receipts on the island.
A third Singaporean company, a natural gas service provider, is also exploring the possibility of a TDR through the law firm, Liu added.
Liu said listing TDRs has become a popular choice for many Singaporean enterprises on the back of Taiwan’s very active fund trading, visibility, high turnover rate and favorable price-to-earnings ratios.
“Many of the companies from the city state believe that issuing TDRs will give a further boost to their primary listings on their local bourse,” Liu said.
According to Liu, most of the enterprises that have expressed an interest in the idea of TDRs are small and medium enterprises, ranging from traditional to electronics and energy-related industries.
Liu said he has encouraged other enterprises from Singapore to become part of the trend and apply to list on Taiwan’s bourse. He noted that Singapore-based Oceanus Group Ltd., the world’s largest inland abalone breeder, successfully issued TDRs in 2009.
These recent developments will help Taiwan fulfill its goal of becoming a major investment hub and the NASDAQ-equivalent of the Asia-Pacific region, Liu said. (AW-HZW)