Taipei, Oct. 18 (CNA) Enterprises raised almost NT$390 billion (US$12.83 billion) in funds in the local capital market for the first nine months of this year as the government reduced red tape to encourage companies to seek funds for future expansion, according to the Taiwan Stock Exchange (TWSE).
The TWSE said that funds raised in the local capital market during the nine-month period totaled NT$384.8 billion, up from the NT$369.3 billion raised in the first eight months.
Market analysts said the large fund demand in the local market in the past nine months partly reflected several prominent initial public offerings (IPOs), including a listing of Aerospace Industrial Development Corp. (AIDC) on the main board.
Under a privatization scheme, AIDC's IPO raised more than NT$9.34 billion through its listing on the main board.
In the past three quarters, funds raised through IPOs in the local market totaled NT$13.4 billion, up from NT$NT$2 billion recorded over the same period last year. The nine-month figure also dwarfed the NT$7.7 billion raised from IPOs for the entire 2013.
During the nine-month period, funds raised through IPOs, secondary public offerings and sales of depositary receipts and bond issuance totaled NT$195.4 billion, accounting for more than 50 percent of the total funds raised in the local capital market.
The TWSE said that an increase in fund-raising activity is expected to speed up the pace of expansion of the local business, while expansion in the scale of business operations will no doubt create more job openings and boost the country's entire economy.
To encourage more enterprises at home and abroad to raise funds in Taiwan, the TWSE is determined to eliminate more market barriers by revising rules governing the local securities industry, while it will continue to visit unlisted companies to provide necessary assistance for their future listings in the market.
(By Tien Yu-pin and Frances Huang)