PROCEDURES FOR INITIAL PUBLIC OFFERING

Public offering is a popular method of raising capital in the stock market. As a requirement to ensure transparency and legality, entities implementing the initial public offering must comply with strict conditions and registration procedures as prescribed by law.

1. What is public offering?

Public offering means the offering of securities:

– Through mass media;

– To at least 100 investors, not including professional investors;

– To unidentified investors.

In particular, securities include: i- stocks, bonds, fund certificates; ii- Warrants, covered warrants, share purchase rights, depository certificates; iii- Derivative securities; iv Other types of securities regulated by the Government.

2. What are the forms of initial public offering?

– Initial public offering for raising additional capital to the issuer;

– Initial public offering to become a public company by changing ownership structure without increasing the issuer’s charter capital;

– Combination of the forms above.

Initial public offering of fund certificates for establishment of a securities investment fund.

3. What are the procedures of initial public offering?

a. Submitting application for registration of offering:

Issuing organizations and shareholders registering for public offerings submit registration documents for public securities offerings to the State Securities Commission.

If information is found to be inaccurate or miss important content that must be included in the file as prescribed, or it is necessary to explain an issue that may cause misunderstanding, the issuer or shareholder registering makes amendments and supplements to documents according to regulations.

b. Completing the offering registration procedure:

Within 07 working days from the date of receiving notice from the State Securities Commission, the issuing organization and shareholders registering for the offering shall send to the State Securities Commission 06 official prospectuses to complete the procedures.

c. Issuing Certificate of registration for initial public offering of securities:

The State Securities Commission issues a Certificate of registration for public offering of securities or refuses according to regulations if the application is invalid.

d. Disclosing information:

Within 07 working days from the effective date of the Certificate of Registration for Public Offering of Securities, the issuing organization and shareholders registering for the offering must publish the Notice of Issuance:

– On 01 electronic or printed newspaper in 03 consecutive issues as prescribed; and

– On the issuing organization’s website, the shareholder registering for the offering is the organization (if any) or the Stock Exchange. The official prospectus must be simultaneously posted on the website of the issuing organization, the shareholder registering for the offering as an organization (if any) and the Stock Exchange

e. Distributing securities:

Issuing organizations and shareholders registering for the offering shall distribute securities in accordance with the provisions of the Law on Securities.

f. Reporting on the results of the initial public offering:

Within 10 days from the end of the offering, the issuing organization or underwriting organization or shareholder registering for the offering must send a Report on the results of the offering with confirmation from the bank or foreign bank branch where the account was opened blocked the proceeds from the offering to the State Securities Commission according to regulations.

At the same time, publish information on the website of the issuing organization, shareholders registering for the offering as organizations (if any), and the Stock Exchange about the results of the offering.

>> CONFIRMATION AS PROFESSIONAL SECURITIES INVESTOR https://linconlaw.vn/confirmation-as-professional-securities-investor/

g. Announce the State Securities Commission:

Within 03 working days from the date of receipt of the complete and valid offering report, you are responsible for:

– Notifying in writing the issuing organization and shareholders registering for the offering of the receipt of the report on the results of the offering or the decision to cancel the public offering of securities; At the same time, send it to the Stock Exchange and Vietnam Securities Depository and Clearing Corporation;

– Posting information about receiving the report on the results of the offering or the decision to cancel the public offering of securities on the website of the State Securities Commission.

h. Terminating of blockade of proceeds from the offering:

After receiving notice of the State Securities Commission’s report on the results of the offering, the issuer and shareholders registering for the offering are required to stop blocking the proceeds from the offering.