Vietnam: Selling prices in the initial offering of shares by state-owned enterprises

According to Circular No. 40/2018/TT-BTC of the Ministry of Finance of Vietnam, selling prices in the initial offering of shares by state-owned enterprises and single-member limited liability companies with 100% charter capital invested by state-owned enterprises are specified as follows:

1. The selling price offered to investors through the auction is the price they offer in such auction and is identified as the winning price according to the auction results prescribed in clause 5 in Article 7 of this Circular. For the case in which the equitized enterprise sells its shares through issuance underwriting, the steering committee shall come to an agreement with the underwriting organization on the underwriting price but not lower than the reserve price approved by the representative authority.

2. The selling prices of preferential shares offered to entities prescribed in Clause 1 Article 42 of Decree No. 126/2017/ND-CP of Vietnam’s Government include:

- the selling price offered for entities prescribed in point a and c, Clause 1, Article 42 of Decree No. 126/2017/ND-CP which is equal to 60% of face value of a share (VND 10 thousand per a share);

- the selling price offered to entities prescribed in Clause, Article 42 of Decree No. 126/2017/ND-CP which is the reserve price approved in the equitization plan by the representative authority.

3. The selling price of preferential shares offered to the trade union of the equitized enterprise shall be equal to the face value of a share.

Details of the selling price offered to strategic investors can be found in Circular No. 40/2018/TT-BTC of the Ministry of Finance of Vietnam, which takes effect from June 18, 2018.

- Thanh Lam -

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