According to Article 15, Clause 1 of the Securities Law 2019, the conditions for offering securities to the public are as follows:
The conditions for the initial public offering of shares by a joint stock company include:
- The contributed charter capital at the time of registration for sale must be at least 30 billion VND, calculated based on the value recorded in the accounting books;
- The business operations of the two consecutive years prior to the year of registration for public offering of shares must be profitable, and there must be no accumulated losses up to the year of registration.
- There is a plan for issuing and utilizing the capital obtained from the shares offering, which was approved by the Shareholders' General Meeting;
- At least 15% of the voting shares of the issuing organization must be sold to at least 100 investors who are not major shareholders; in case the charter capital of the issuing organization is equal to or exceeds 1,000 billion VND, the minimum ratio is 10% of the voting shares of the issuing organization;
- Major shareholders prior to the initial public offering of the issuing organization must commit to collectively hold at least 20% of the registered capital of the issuing organization for a minimum of 01 year from the end date of the offering period.
- The issuing organization is not subject to criminal liability or has been convicted of any offenses related to economic management order that have not been expunged.
- There is a securities company advising on the registration dossier for the public offering of shares, except in cases where the issuing organization is a securities company.
- There is a commitment and it must be implemented to list or register the shares trading on the stock exchange system after the end of the offering period;
- The issuing organization must open a restricted account to receive the money for purchasing the shares in the offering period.
