How Should a Startup Choose Where to List?

Every founder dreams of listing their company. If the opportunity comes, how should they choose? In an earlier Gogoro article, I compared outstanding companies going abroad with baseball players Chien-Ming Wang and Chin-Feng Chen pursuing Major League Baseball. We would not confine them to Taiwan, nor would Shohei Ohtani or Ichiro Suzuki settle for only Japanese baseball. Had Messi stayed in Argentina, his global legend would not have emerged. We support top performers testing themselves globally, bringing Taiwan visibility and attracting capital. Yet someone far from world-class may struggle between Single-A and Triple-A. Like athletes, companies need the right market. Even Ohtani and Suzuki developed in Japan before moving to the majors. Consider recent US and Japanese listings: Gogoro (GGR), Perfect Corp. (PERF), Gorilla Technology Group (GRRR), and Appier (4180). At year-end 2023, their market values were US$630 million, US$370 million, US$40 million, and US$1.34 billion. Only Japan-listed Appier rose over the preceding year, around 37%; the US-listed companies fell 23–94%. Only Appier exceeded the US$1 billion unicorn threshold. Taiwan-listed 91APP and Gogolook were worth NT$12.7 billion and NT$5.4 billion, showing Taiwan’s market can also deliver meaningful results. Let us consider how startups choose a suitable venue. First, where are the customers and markets? Appier, the best-performing overseas listing, derives 66% of revenue from Northeast Asia, including Japan and South Korea, and 15% from Greater China. I infer Japan is its largest market, making a Japanese listing reasonable. 91APP and Gogolook still earn mainly in Taiwan, where customers, recognition, media attention, and brokerage research help sustain market interest. Second, fit the market’s character and scale. Having worked in investment banking for years, I advised clients on venues. Taiwanese businesses often asked about Hong Kong versus Taiwan. Hong Kong’s dominant property and financial sectors were less familiar with Taiwan’s electronics strengths. Some electronics companies listed there, received low P/E ratios and little interest, then delisted. A small company in an unfamiliar large market also struggles for attention. Appier chose Japan, with relatively higher software P/E ratios, and at JPY188 billion moved from the Growth to the Prime market to attract more attention. Third, weigh valuation, listing and ongoing costs, time, shareholder composition, and tax planning together. Shareholders can shape venue choice. Many Chinese companies that listed in America had foreign VC shareholders or Chinese VC dollar funds. China’s strict foreign-investment controls encouraged dollar funds to demand US listings for exits. I also assessed Chinese listings for Taiwanese clients, but A, B, and H shares have different investor restrictions. The earlier approval system meant queuing with uncertain timing. Taiwan offers faster review: the standard process calls for a review meeting six weeks after application, shorter original-shareholder custody requirements, and lower application and ongoing costs. Its liquidity and P/E ratios rank highly globally. Crucially, individual securities capital gains are tax-exempt. Taken together, I still recommend Taiwan as the primary plan for a Taiwanese SME. Fourth, consider why an American would invest in you. A US listing is possible, but ideally the company ranks among the regional top three in a sufficiently large industry. Is its visibility and investment story compelling? Arm attracts attention because nearly all mobile-device chips use its IP. Without such appeal, why would an American choose a Taiwanese stock when many global businesses are available? TSMC naturally attracts attention, but which other Taiwanese names do Americans recognize? Why choose an East Asian regional company over globally competitive alternatives? At minimum, pursue an appealing venture and top-three standing in a substantial region, such as ASEAN+N. Small markets, weak positioning, and low valuations can leave a US listing without investors, attention, liquidity, or institutional research. Consider Grab, operating across Indonesia, Malaysia, Thailand, the Philippines, Vietnam, and Singapore. Southeast Asia has nearly 700 million people and rapid growth. Grab listed in late 2021 through the largest SPAC transaction ever, at US$37 billion, yet is now worth roughly US$13 billion, down about 65%. Calmly ask whether your Taiwanese venture is genuinely more attractive to US investors than Grab. Unless the company is truly distinctive—a world-leading hidden champion or at least top three in a substantial region—consider Taiwan’s accessible capital market while small. Listing can raise visibility, attract talent, and access public funding, using Taiwan’s inexpensive capital and strong talent before going global. A Taipei Exchange company worth over NT$30 billion can rank in the top thirty, join relevant indices, and gain visibility. TPEx also holds domestic and international institutional-investor presentations. Newly listed Taiwanese companies commonly begin at NT$1–5 billion. Strong teams can use that market to keep growing, with many examples reaching US$1–3 billion. Dream ambitiously, but pursue those dreams practically through plans and steps. Taiwan’s capital market is an attainable intermediate goal for a startup.