Vietnam: Regulations on the distribution of shares to strategic investors

02:56, 11/07/2024

This content is stipulated in Circular 21/2019/TT-BTC guiding the initial purchase of shares and the transfer of state capital by the book- building method.

According to Circular 21/2019/TT-BTC, the distribution of shares to public investors and strategic investors in Vietnam is implemented as follows:

- Investors eligible to purchase shares are those who place bids higher than or equal to the distribution price. The volume of shares allocated follows the principle of priority in the following order: firstly, price priority; secondly, order time priority; and thirdly, distribution ratio priority in the case of multiple investors placing bids at the same price and time.

- In the case where multiple investors place bids at the same price and order time based on the third priority, the volume of shares allocated to each investor is determined as follows:

The volume of shares to be purchased by the investor	=	The volume of undistributed shares at the same price	x	The volume of shares investor bids at the same price and order time
				Total volume of shares investors bid at the same price and order time

The regulations may be found in Circular 21/2019/TT-BTC effective from June 3, 2019.

- Thanh Lam -

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