JOIN STOCK COMPANY MUST HAVE AT LEAST VND 30 BILLION OF REGULATION CAPITAL FOR INITIAL OFFERING OF STOCK
This is one of new, strict conditions for enterprises’ public offer of securities in the Law on Securities No. 54/2019/QH14. As in the Law on Securities No. 70/2006/QH11, this number is only VND 10 billion.
The new Law also provides numerous of strict provision for a joint-stock company’s initial public offering of stocks. To be specific: Before the issuing of initial public offering of stocks, the major shareholders must commit to hold together at least 20% of the issuing organization's charter capital for at least 01 year after the end of the offering; The issuing organization must open a frozen account to receive money to buy stocks of the offering; The issuing organization shall have a commitment and must list or register stock transactions on the securities trading system after the end of the offering...
Apart from ensuring some conditions as with the first issuing, a public company wants to offer additional stocks to the public shall meet the following conditions: Its business operations in the year immediately preceding the year of offering registration must be profitable, at the same time, it has no accrued loss up to the year of offering registration; The value of additional stocks issued by par value shall not be greater than the total value of outstanding stocks accounted by par value, except for the cases where the issuing organization have an issuance underwriting according to law...
This Law is passed by the National Assembly on November 26, 2019 and takes effect on July 01, 2020.
