Seven conditions for listing securities on the stock market

Source: Internet

Decree 155/2020/ND-CP has many provisions related to the listing of securities in Vietnam by domestic issuers, which prescribe seven conditions for listing shares, including:

First, a joint stock company with a charter capital of VND30 billion or more at the time of registration, based on the most recent audited financial report, and a minimum capitalization value of VND30 billion, calculated according to the weighted average settlement price of shares in the latest public offering or reference price of shares traded on the Upcom trading system, on average for the last 30 sessions prior to the time of submission of the application for listing registration or the weighted average of the payment price in the first sale of shares of the equitized enterprise.

Second, the listing has been approved by the General Meeting of Shareholders; has been trading on the Upcom trading system for at least two years, except where the listed organization has offered shares to the public or the enterprise is equitized.

Third, the ratio of return on equity (ROE) of the year immediately preceding the year of registration for listing is at least 5% and the business operation of the two years immediately preceding the year of registration for listing must be profitable; has no overdue debts more than a year by the time of listing registration; there is no accumulated loss based on the most recent audited financial statements or reviewed semi-annual financial statements in case of listing registration after the end of the semi-annual financial statement period.

Fourth, except for the case of an equitised enterprise, the listed organisation must have at least 15% of the voting shares held by at least 100 non-major shareholders; in the case that the charter capital of an organisation registering for listing from VND1,000 billion or more, the minimum rate is 10% of the number of voting shares.

Fifth, shareholders are individuals and organisations whose ownership representatives are the Chairman of the Board of Directors, members of the Board of Directors, Head of the Supervisory Board and members of the Supervisory Board (Supervisor), General Director (Director), Deputy General Director (Deputy Director), Chief Accountant, Chief Financial Officer and equivalent managerial positions elected by the General Meeting of Shareholders or appointed by the Board of Directors and major shareholders are related persons of the above subjects must commit to continue holding 100% of their shares for a period of six months from the first trading date of the shares on the Stock Exchange and 50% of these shares for the next six months, excluding the number of shares held by the state owned by the above individuals.

Sixth, the company, the legal representative of the company has not been settled for violations within two years up to the time of registration for listing due to committing prohibited acts in securities and stock market activities.

Finally, there is a securities company to advise on listing registration documents, except for cases where the organisation registering for listing is a securities company.