On 11/04/2019, the Ministry of Finance issued Circular No. 21/2019/TT-BTC guiding the sale of initial shares and state capital transfers according to the method of book making (book building). This Circular takes effect from 03/06/ 2019.
Investors who buy shares sold for the first time by State-owned enterprises by the method of book construction must make deposits as follows:
– Public investors must pay a deposit equal to 10% of the value of shares registered to buy at the opening price.
– Strategic investors must pay deposits and deposits equal to 20% of the value of shares registered to buy, calculated at the reserve price in the approved equitization plan.
The deposit will be deducted from the total amount to be paid to buy shares. If the deposit is larger than the amount to be paid, the difference will be returned to the investor within 03 days after the end of the payment term.
The time limit for payment of the number of shares registered to buy is 10 days from the date of publication of the book-making result. If the investor fails to pay the full amount to buy the stock on time, the investor will not be returned the deposit.
Thus, Circular No. 21/2019/TT-BTC has contributed to building a specific and clear legal framework for conditions to deposit when buying shares of state-owned enterprises of investors.