Choosing Where to List: Taiwan’s Capital Markets Suit Pre-Listing Raises of NT$100 Million–1 Billion

The publisher has a different view. There are many considerations in choosing where to list. I have previously shared my own views on factors such as markets, customers, scale, and attractiveness. Taiwan’s capital markets offer a low listing threshold—NT$30–50 million in after-tax profit can be enough to list—low costs of NT$5–8 million, low ongoing maintenance costs, reasonable liquidity, and convenient access to capital. Let me raise a point about the amount of capital GGR has raised. GGR listed in the United States in April 2022. According to media reports, it raised US$334 million before listing and recently completed another US$75 million private placement. In other words, its US listing enabled GGR to secure over US$400 million in operating funding in two years. GGR has a very cash-intensive business model, seeking to leapfrog established motorcycle manufacturers such as SYM and KYMCO within a few years. If GGR had remained in Taiwan’s capital markets, could it have raised more than NT$10 billion in operating funding? Personally, I am cautious. At present, Taiwan’s capital markets are well suited to pre-listing raises of NT$100 million–1 billion, usually for profitable companies. If an SME with NT$50 million in after-tax profit lists on the OTC market, its pre-listing fundraising generally comes in below NT$100 million. There is nothing wrong with that: newly listed OTC companies tend to be small, and the purpose of listing is to use the capital market platform to grow rapidly. Raising relatively little before an OTC listing is fine when the company is small. The key is whether it can keep growing and increasing its scale, while progressively raising more capital, building its profile, attracting excellent talent, and finding more opportunities to work with overseas partners. For entrepreneurs, listing is about pursuing the next phase of growth, not rushing to cash out and leave. Returning to the main point, beyond markets, customers, and visibility, you have to consider the scale of your business and its funding needs together.