Regulations on suspension of public offering in Vietnam

Regulations on suspension of public offering in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Regulations on suspension of public offering in Vietnam

Regulations on suspension of public securities offerings according to Article 27 of the Law on Securities 2019 are as follows:

- SSC is entitled to suspend a public offering for up to 60 days in the following circumstances:

= The public offering application contains inaccurate or inadequate information that might affect investors’ decisions and cause damage to investors;

= The securities are not distributed in accordance with Article 26 of Law on Securities 2019.

== Securities shall only be distributed after the issuer makes the prospectus publicly available at the locations specified in the issuance announcement.

== The issuer, the underwriter or agent shall distribute securities fairly and openly; allow investors a minimum period of 20 days to subscribe. In case the offered securities are secured warrants, the time limit shall be specified in the issuance announcement.

In case the quantity of securities subscribed exceeds the permissible quantity, the issuer or underwriter shall distribute the permissible quantity of securities to investors in proportion to the ratio of securities subscribed by each investor.

== All the payment for securities shall be deposited to an escrow account opened at a bank or FBB until the offering ends and a report is submitted to SSC.

== The issuer shall complete the distribution of its securities within 90 days from the effective date of the certificate of registration of public offering. In case the issuer is not able to complete the distribution of within this time limit, SSC will consider extending the time limit for up to 30 more days. If the offering is divided into multiple waves, the interval between two waves shall not exceed 12 months.

== The issuer or underwriter shall submit a report on the offering result to SSC within 10 days from the end of the offering together with a confirmation of the total revenue from the offering issued by the bank or FBB where the escrow account is opened.

== The issuer shall complete the distribution of its securities within 30 days from the effective date of the certificate of registration of public offering.

- Within 07 working days from the suspension date, the issuer shall announce suspension in accordance with Clause 3 Article 25 of Law on Securities 2019, withdraw the issued securities if requested by the investors, and refund the payment to the investors within 15 days from the day on which the request is received.

- After the causes of the suspension have been rectified, SSC shall issue a notice to lift the suspension.

- Within 07 working days from the issuance date of the notice of lifted suspension, the issuer shall announce it in accordance with Clause 3 Article 25 of Law on Securities 2019.

2. Types of public offering in Vietnam

According to Clause 1, Article 14 of the Law on Securities 2019, public offerings include initial public offerings, follow-on offerings of shares or pull options, and other types of offerings.

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