How to determine the reference price when registering to trading of unlisted securities in Vietnam?
What is the reference price of unlisted shares during the trading day?
Pursuant to Clause 4, Article 19 of the Regulation promulgated together with Decision No. 34/QD-HDTV in 2022, the reference price of securities on the trading day is the weighted average of the prices in the even-lot transaction to follow the method of continuous order matching of the previous most recent trading day.
During the ex-rights date, except for the cases where the reference price is not adjusted as prescribed in Clause 7 Article 19 of the Regulations promulgated together with Decision No. 34/QD-HDTV in 2022, the reference price is determined according to the principle of taking the weighted average price of the latest trading day adjusted according to the value of dividends received or the value of the attached rights.
In case of splitting or merging of shares, the reference price at the date of re-trading is determined according to the principle of taking the weighted average price of the trading day before the date of separation or consolidation, adjusted according to the ratio of shares splitting or merging.
How to determine the reference price when registering to trading of unlisted securities in Vietnam?
Pursuant to Article 19 of the Regulation on registration and management of unlisted securities trading promulgated by the Members' Council of the Stock Exchange of Vietnam (hereinafter referred to as the Regulations) together with Decision No. 34/QD-HDTV in 2022, the reference price of unlisted shares registered for trading is as follows:
Reference prices
1. For newly registered shares for trading, the reference price for the first trading day proposed by the trading registration organization. Before the first trading day, the organization registering the transaction must publicly disclose on the company's website the method of determining the reference price, principles and the financial data contained in the financial statements or other relevant documents used to determine the reference price.
2. In case the organization registering the transaction is a public company that has been delisted under Point b, Clause 1, Article 133 of Decree No. 155/2020/ND-CP, the reference price for the first trading day is the closing price at the last trading day on the listed market or the reference price at the last trading day on the listed market (if there is no transaction on the last trading day to determine the closing price).
3. For an equitized enterprise associated with registration, depository and transaction registration on the UPCoM trading system, the reference price for the first trading day is the average successful auction price (for the case of offering by auction method) or the price distributed to investors (in the case of an offer for sale by the book-building method).
Thus, the reference price for the first trading day of unlisted shares registered for trading is determined in each specific case as follows:
- Is the price proposed by the trading registration organization for newly registered shares for trading.
- Is the closing price on the last trading day on the listed market or the reference price at the last trading day on the listed market (if there is no transaction on the last trading day to determine the closing price) for in case the organization registering the transaction is a public company that has been delisted according to Point b, Clause 1, Article 133 of Decree No. 155/2020/ND-CP.
- Is the average successful auction price (in the case of an offer for sale by auction method) or the price distributed to investors (in the case of an offer for sale by the book-building method) for an equitized enterprise associated with with registration, depository and transaction registration on the UPCOM trading system.
How to determine the reference price when registering to trading of unlisted securities in Vietnam?
What is the price fluctuation range and price fluctuation limit when registering for trading of unlisted securities in Vietnam?
Price fluctuation range and price fluctuation limit when registering for trading of unlisted securities are specified in Article 18 of the Regulation attached to Decision No. 34/QD-HDTV, specifically:
- The price fluctuation range for shares registered for trading during the trading day is ± 15% compared to the reference price.
- The price fluctuation range is ± 40% compared to the reference price in the other trading days below:
+ The first trading day of newly registered shares until the reference price is established from the results of the continuous order matching method;
+ The first day of re-trading of stocks without trading for more than 25 consecutive trading days until the reference price is established from the results of the continuous matching method;
+ The first day of resumption of transactions in case of separation of registered enterprises;
+ Exempt transaction date in the following cases:
++ Paying dividends or bonus shares to existing shareholders;
++ Paying cash dividends with an amount greater than or equal to the weighted average price of shares on the trading day immediately preceding the ex-dividend date;
++ Issuance of convertible bonds for existing shareholders.
- In case of necessity to stabilize the market, the State Securities Commission shall decide to adjust the price fluctuation band according to the provisions of Clause 2, Article 4 of Circular No. 120/2020/TT-BTC.
- Price fluctuation limit for shares registered for trading is determined as follows:
Ceiling price = Reference price + (Reference price x Price range)
Floor price = Reference price - (Reference price x Price range)
- In case the ceiling price or floor price of the shares registered for trading determined according to the provisions of Clause 3, Article 18 of the Regulation attached to Decision No. 34/QD-HDTV equal to the reference price, the ceiling price and floor price will be implemented. Adjust as follows:
Adjusted ceiling price = Reference price + 01 quote unit
Adjusted floor price = Reference price - 01 quote unit
- The ceiling price and floor price on the trading day of the shares registered for trading are calculated according to the provisions of Clauses 3 and 4, Article 18 of the Regulation attached to Decision No. 34/QD-HDTV and rounded down for the ceiling price, rounded up for floor prices in quote units.
In case the floor price is adjusted according to the provisions of Clause 4, Article 18 of the Regulation attached to Decision No. 34/QD-HDTV and is less than or equal to 0, the floor price will be adjusted by the reference price.
- In case after calculation, the reference price is equal to the quote unit (in case there is 1 quote unit), or the smallest quotation unit (in case there are many quotation units), the price fluctuation limit is determined as follows:
Adjusted ceiling price = Reference price + 01 quote unit
Adjusted floor price = Reference price
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