Vietnam: The total value of offered shares must be at least 50 billion VND

Vietnam: The total value of offered shares must be at least 50 billion VND (Internet image)

Article 4 of Circular 227/2012/TT-BTC stipulates that the initial public offering must be registered with the State Securities Commission by the asset management company, and comply with the following regulations:

• The total value of offered shares reaches at least 50 billion VND;

• The asset management company has enough capital as prescribed by laws on the establishment, organization and operation of asset management companies; is not put under the control, special control, suspension, termination, amalgamation, merger, dissolution, or bankruptcy;

• The asset management company does not omit to implement the decision on penalties for the violations against the regulations on securities made by competent State agencies, and to relieve the consequences.

At the same time, the issue of additional shares of the investment company must be registered with the State Securities Commission, via the asset management company, and comply with the following regulations:

- Satisfy the conditions in Clause 1 and Clause 2 Article 94 of the Law on Securities;

- Have plans for the issues and capital used passed by the latest General meeting of shareholders of the investment company. The passed plan must consist of the following contents:

• The information about the ratio of call options; the rules and methods for determining issuing prices; the stock dilution after the issue; the method for determining issue prices; the ratio of successful issue, or the minimum amount collected from the issue, and the solutions when the issue does not succeed or the amount collected is not adequate as anticipated; the criteria for selecting investors to issue, and the method for determining the issue conditions if the shares additionally issued are not completely distributed;

• Information about the plan for using capital; the targets, plans, and disbursement roadmap (if any);

- The issue dossier, the issue time, the specific issue prices, the criteria and subjects of offering, if the call options are not completely distributed, must be passed by the Board of Directors of the investment company;

- Shares are only issued to the existing shareholders of the investment company by issuing call options. The call option on transferable shares. Where existing shareholders fail to exercise their call options, the investment company may offer them to other investors.

More details can be found in Circular 227/2012/TT-BTC, which comes into force from July 1, 2013.

Le Vy

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