When does the State Securities Commission issue a decision to cancel a public offering in Vietnam?

- If the causes of the suspension are not rectified within 60 days, the public offering shall be canceled;

- The quantity of voting shares being sold to at least 100 non-major shareholders of the issuer is below the ratio that 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%;

- The follow-on offering fails to raise adequate capital to execute the issuer’s project (if the public offering is meant to raise capital to execute a project of the issuer, at least 70% of the offered shares must be sold to the investors; he issuer shall have a plan to make up for the shortage in case the capital generated by the offering is inadequate).

The public offering is canceled under an effective court judgment or decision, arbitral decision or decision of a competent authority in cases other than those mentioned above.

Within 07 working days from the cancellation date, the issuer shall announce cancellation by issuing 01 online newspaper or 03 issues of a physical newspaper, withdraw the issued securities if requested by the investors, and refund the investors within 15 days from the cancellation date. If the investors are not refunded by this deadline, the issuer shall pay damages as agreed with the investors.

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

Ty Na

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