What are requirements for public offering of joint stock companies in Vietnam?

05:56, 05/12/2019

This is a content of the Law on Securities 2019, approved by the National Assembly of Vietnam on November 26, 2019.

chào bán cổ phiếu lần đầu, Luật Chứng khoán 2019

According to Clause 1 Article 15 of the Law on Securities 2019 of Vietnam, a joint-stock company (the issuer) shall satisfy the following requirements to offer its shares publicly:

- The contributed charter capital is at least 30 billion VND on the offering date according to the accounting books;

- The company has profit over the last 02 years and has no accumulated loss on the offering date;

- There is a plan for issuance and use of capital generated by the offering ratified by the General Meeting of Shareholders;

- At least 15% of its voting shares have been sold to at least 100 non-major shareholders. If the issuer’s charter capital is 1.000 billion VND or above, the ratio shall be 10%.

- Before the offering date, the major shareholders have made a commitment to hold at least 20% of the issuer’s charter capital for at least 01 year from the end of the offering;

- The issuer is not undergoing criminal prosecution and does not have any unspent conviction for economic crimes;

- The offering is consulted by a securities company, unless the issuer is already a securities company;

- The issuer has a commitment to have its shares listed or registered on the securities trading system after the end of the offering;

- The issuer has an escrow account to receive payments for the offered shares.

View more details at the Law on Securities 2019 of Vietnam, effective from January 01, 2021.

Thuy Tram

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