What are determination of price and price fluctuation range of newly listed shares on the Ho Chi Minh Stock Exchange in Vietnam?

What are determination of price and price fluctuation range of newly listed shares on the Ho Chi Minh Stock Exchange in Vietnam?

In Article 11 of the Regulation on securities trading at the Ho Chi Minh City Stock Exchange, issued together with Decision 352/QD-SGDHCM in 2021, there are regulations on determination of price and price fluctuation range of newly listed shares on the Ho Chi Minh Stock Exchange as follows:

1. The determination of prices of stocks, closed-end fund certificates, ETF certificates and warrants newly listed on the first trading day is prescribed as follows:

a) For stocks, closed-end fund certificates, ETF certificates, the listing organization and listing consulting organization (if any) must provide an expected price to serve as the reference price on the first trading day. 

For warrants based on underlying securities being shares, the reference price on the first trading day is determined as follows:

Reference price of warrants = Issuance price of warrants x (Referral price of the underlying stock on the first trading day of the warrant / Reference price of the underlying stock at the date of the warrant issuance notice ) x (Conversion rate at the warrant issuance date /Conversion rate at the first trading day).

b) The price fluctuation range of stocks, closed-end fund certificates, ETF certificates on the first trading day is +/-20% compared to the reference price on the first trading day.

c) The closing price on the first trading day will be the reference price for the next trading day. The price fluctuation range specified in Article 9 of this Regulation shall be applied from the next trading day.

d) If within the first three (03) trading days, the newly listed shares, closed-end fund certificates and ETF certificates still have no closing price, the listing organization must re-determine the reference price.

2. Expected reference price and price fluctuation range are not specified for newly listed bonds on the first trading day.

3. Deals in stocks, closed-end fund certificates, ETFs, warrants are not allowed on the first trading day.

What is determination of price and price range of a stock that is re-traded after being suspended for more than 25 trading days at the Ho Chi Minh Stock Exchange in Vietnam?

In Article 12 of the Regulation on securities trading at the Ho Chi Minh City Stock Exchange, issued together with Decision 352/QD-SGDHCM in 2021, there are regulations on determination of price and price range of a stock that is re-traded after being suspended for more than 25 trading days at the Ho Chi Minh Stock Exchange as follows:

1. For stocks, closed-end fund certificates, ETF certificates, which are re-traded after being suspended from trading for more than twenty-five (25) trading days, the price fluctuation range in the first trading day The first is +/-20% of the reference price on the first day of re-trading.

2. The closing price on the first trading day after being re-traded will be the reference price for the next trading day. The price fluctuation range specified in Article 9 of this Regulation shall be applied from the next trading day.

3. If within the first three (03) days after trading resumes, stocks, closed-end fund certificates, and ETF certificates are re-traded without closing price, the Stock Exchange will consider adjusting the margin. price fluctuations of stocks, closed-end fund certificates, and ETF certificates after the approval of the State Securities Commission.

4. For call warrants, the reference price of the first trading day after being suspended for more than twenty-five (25) trading days is determined as follows:

Reference price of a call warrant = Closing price of the warrant on the trading day immediately preceding the suspension date x (Reference price of the underlying stock on the first trading day of the warrant after re-trading / Reference price of the underlying stock on the trading day immediately preceding the suspension date) x (Conversion rate on the trading day immediately preceding the suspension date of warrant trading/ Conversion rate on the first trading day of warrants after re-trading).

What is price determination and price fluctuation range of the stock at the ex-dividend date for case of dividend payment at the Ho Chi Minh Stock Exchange in Vietnam?

In Article 13 of the Regulation on securities trading at the Ho Chi Minh City Stock Exchange, issued together with Decision 352/QD-SGDHCM in 2021, there are regulations on price determination and price fluctuation range of the stock at the ex-dividend date for case of dividend payment at the Ho Chi Minh Stock Exchange are as follows:

1. In case of paying dividends/bonuses in treasury shares to existing shareholders:

a) The price fluctuation range of stocks and closed-end fund certificates during the ex-dividend trading day is +/-20% compared to the reference price.

b) The closing price on the ex-dividend day will be the reference price for the next trading day. The price fluctuation range specified in Article 9 of this Regulation shall be applied from the next trading day.

c) If within the first three (03) days after the ex-dividend date, stocks or closed-end fund certificates still have no closing price, the Stock Exchange will consider adjusting the price fluctuation range of stocks and closed-end fund certificates after approval of the State Securities Commission.

2. In case of offering treasury shares to existing shareholders: No adjustment of the price fluctuation range on the ex-dividend date.

Best Regards!