Requirements for making follow-on offering of a public company in Vietnam
According to the new regulations passed by the National Assembly on the field of securities, what requirements must a public company making follow-on offering meet?
Requirements for making follow-on offering of a public company in Vietnam (Image from the Internet)
Pursuant to Clause 2, Article 15 of the Securities Law 2019 (Effective January 1, 2021) stipulating requirements for making follow-on offering of a public company:
- The contributed charter capital is at least 30 billion VND on the offering date according to the accounting books;
- There is a plan for issuance and use of capital generated by the offering ratified by the General Meeting of Shareholders;
- 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.
- The company has profit in the preceding year and has no accumulated loss on the offering date;
- The value of the new shares does not exceed the total value of shares outstanding at their face value, unless there is a commitment to buy all of the shares of the issuer for reselling or to buy all of the unsold shares of the issuer, shares issued to raise more capital from equity, shares issued for swapping, consolidation or acquisition of enterprises;
- 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. The issuer shall have a plan to make up for the shortage in case the capital generated by the offering is inadequate.
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