What are the procedures for registering to participate in the share auction among strategic investors in Vietnam?
What are the procedures for registering to participate in the share auctions among strategic investors in Vietnam?
According to the provisions of Article 11 of Appendix 9 issued together with Circular No. 32/2021/TT-BTC on the procedures for registration to participate in the auction as follows:
Procedure to register to participate in the auction
1. Receive application for participation in share purchase: Investors receive or print the application form for participation in share purchase at the locations and website addresses mentioned in Clause 2, Article 8 of this Regulation.
2. Submit an application to participate in buying shares:
Investors fill in all information in the Application to participate in the share purchase and submit the original at the registration place and present the following documents:
a) For investors being domestic organizations:
- A valid copy of the Certificate of Business Registration/Enterprise Registration or another equivalent document;
- A power of attorney for the representative to carry out the procedures on behalf of the organization, enclosed with a valid copy of the identity card/citizen identity card, passport of the authorized recipient, unless the person doing the procedure is the legal representative of the organization.
b) For investors being foreign organizations: In addition to the provisions as for domestic organizations, they must present:
- A certificate of opening an indirect investment capital account at a payment service provider in accordance with Vietnamese law on foreign exchange;
- Certificate of securities trading code according to the provisions of Vietnamese law.
3. Deposit
a) The investor must pay a deposit equal to 20% of the total value of the total number of shares registered for purchase calculated at the starting price of the public auction in the approved equitization plan to the account of proceeds from shares of the enterprise or complete the deposit, guaranteed by credit institutions, foreign bank branches before ... (time)....(date)... (up to five (05) working days from the expiration date of the strategic investor's subscription to buy shares);
The exchange rate used to calculate the foreign currency deposit and deposit value is the buying rate of the commercial bank where the equitized enterprise opens a foreign currency account and on the date the investor makes a deposit;
b) The deposit does not earn interest.
4. Time and place for registration procedures
a) Time to complete registration procedures: From ... (time) .... (date) ...;
b) Location to carry out registration procedures: ... (the content includes the name and address of the Stock Exchange);
c) After completing the registration procedures, the investor is issued with the Auction Participation slip.
4. Investors are only allowed to amend their registration information to participate in the auction within the time limit for completing the above registration procedures. In case of modification of information, the investor must make an application according to Form No. 03 of this Regulation and send it to the Stock Exchange.
Thus, strategic investors registering to participate in the share purchase auction follow the following procedures:
+ Receive an application to participate in buying shares
+ Submit an application to participate in buying shares
+ Deposit deposit, deposit
After completing the registration procedures, the investor is issued with an Auction Attendance Note.
What are the procedures for registering to participate in the share auctions among strategic investors in Vietnam?
How to determine the results of the share auction among strategic investors in Vietnam?
According to the provisions of Clause 3, Article 15, Appendix 9 issued together with Circular No. 32/2021/TT-BTC on determining auction results as follows:
- Determine auction results
Auction results are determined according to the provisions of Point a, Clause 5, Article 9 of Circular No. 32/2021/TT-BTC as follows:
+ Determined according to the bid price from high to low for enough shares to be offered but not lower than the starting price. The selling price is the successful bid price of each investor. The investor wins at any price then buys shares at that price.
+ At the lowest winning bid, in case investors (including foreign investors) bid the same price, but the remaining shares are less than the total number of shares registered by these investors. If each investor signs up to buy at the lowest winning bid, the number of shares purchased by each investor is determined as follows:
In case an odd number of shares arises, these odd shares will be allocated to the investor with the largest subscription volume at that price.
+ In case there is a regulation on the maximum percentage of shares purchased by foreign investors, the determination of auction results shall comply with the above principles, but the number of shares purchased by foreign investors must not exceed the maximum rate prescribed by current law.
At the same time, after the auction ends, based on the auction results, the Stock Exchange is responsible for making a record of determining the auction results according to the form in Appendix 4 to Circular No. 32/2021/TT-BTC. The members of the Auction Council consider and co-sign the Record of determining auction results.
How is the notification of auction results made?
According to the provisions of Article 16 of Appendix 9 issued together with Circular No. 32/2021/TT-BTC on notification of auction results as follows:
- The Equitization Steering Committee shall coordinate with the Stock Exchange to announce the auction results immediately after signing the Record on determining the auction results and to announce them on the websites of the equitized enterprise, the Stock Exchange and Consulting organization to sell shares (if any).
- Investors receive results directly at the Stock Exchange within two (02) working days from the end of the auction. In case the investor registers to receive the results by post (send by security), the Stock Exchange is responsible for sending the investor's auction results by post (according to registered investor information) within three (03) working days from the date of announcement of auction results.
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