Title: When is the initial trading order book opening period by book building method? Can investors get a refund of their deposit when the order book result is canceled?
When is the opening time for the first book-building trading order of shares?
According to Article 8 of Circular 21/2019/TT-BTC, the timeline for opening the order book is stipulated as follows:
Order Book
1. The book-building manager must maintain an order book for each subject, which includes both public investors and strategic investors. The order book must contain the following key details:
a) Information on each investor must include: Investor ID, number of shares ordered, order price, order time;
b) General information on the order book must include the total volume of shares ordered at each price level.
2. Order book opening time: 05 consecutive trading sessions. Each session lasts from 9:30 AM to 11:30 AM daily.
3. From 9:00 AM to 9:30 AM daily before each trading session, the book-building manager is responsible for publishing information about the order results, as follows:
a) Announcement content: A chart showing the cumulative volume of shares ordered at each price level since the order book was opened;
b) Publication means: The website of the book-building manager, and the book-building agent.
Thus, the order book opening time is from 9:30 AM to 11:30 AM daily for 05 consecutive trading sessions.
When is the opening time for book-building stock trading order? Are investors refunded their deposits if the order book results are canceled?
Are investors refunded their deposits if the order book results are canceled?
According to Clause 2, Article 11 of Circular 21/2019/TT-BTC on this matter:
Handling cases not meeting the conditions for book-building
1. If the actual volume of shares ordered and the number of investors ordering do not meet the conditions for book-building as stipulated in the share sale plan specified at Point e, Clause 1, Article 4 of this Circular, the equitization steering committee is responsible for deciding to cancel the order book results, reporting to the representative agency of the owner (for state-owned enterprises) or the Members' Council/Chairman of the state-owned enterprise (for level II enterprises) and publishing information about the cancellation of the order book results according to the provisions of Clause 1, Article 12 of this Circular.
2. Investors are refunded their deposits after the equitization steering committee publishes information about the cancellation of the order book results.
3. Handling after canceling the order book results
a) In cases where the share sale plan via book-building does not change and the reopening of the order book has been approved in the share sale plan according to the provisions at Point g, Clause 1, Article 4 of this Circular, the equitization steering committee may re-determine the opening price and implement the procedures and sequences for reopening the order book as stipulated in Articles 7 and 8 of this Circular.
b) If the share sale plan via book-building changes, the equitization steering committee shall report to the representative agency of the owner (for state-owned enterprises) or the Members' Council/Chairman of the state-owned enterprise (for level II enterprises) to decide on the share sale plan according to the provisions of Article 4 of this Circular.
Thus, according to the above regulations, investors are refunded their deposits after the equitization steering committee publishes the information on the cancellation of the order book results.
How is information published if the order book results are canceled?
According to Article 12 of Circular 21/2019/TT-BTC regarding the publication of book-building results information:
- In case of canceling the order book results according to the provisions of Clause 1, Article 11 of this Circular, within one (01) working day from the date of the decision to cancel the order book results, the equitization steering committee must publish information on the cancellation of the order book results. The notification of order book cancellation to each investor is in accordance with the regulations on first-time share sales via book-building.
- Within a maximum of three (03) working days from the date of preparing the book-building result determination report according to Appendix No. 03a attached to this Circular, the equitization steering committee and the equitized enterprise shall cooperate with the book-building manager and the book-building agent to publicly publish the book-building results.
- Within a maximum of one (01) working day from the date of publicizing the book-building results according to the provisions of Clause 2 of this Article, the equitization steering committee is responsible for cooperating with the book-building manager to send the book-building results to the book-building agents. The notification of results to each investor is in accordance with the regulations on first-time share sales via book-building.
- The information publication as stipulated in Clauses 1 and 2 of this Article is carried out on the website of the equitized enterprise, the book-building manager, and the book-building agents.
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