1. Conditions for listing on the Ho Chi Minh Stock Exchange (HOSE)
According to regulations, the conditions for listing on HOSE are:
– Enterprises with contributed charter capital of VND 120 billion or more;
– 02 years immediately preceding the year of listing registration must have a profit on equity at the most recent time of at least 5%;
– No debt overdue for more than 01 year;
– No accumulated losses;
– At least 20% of voting shares held by at least 300 shareholders who are not major shareholders;
– Shares traded on UPCoM for at least 02 years and approved by the general meeting of shareholders. Except where the listing registration organization has offered shares to the public, the enterprise is equitized.
2. In the context of the stock market in the first months of 2023
Vietnam’s stock market is being affected by the general downward trend of the world stock market. In a difficult context, the listing plans of most businesses are slowing down. Enterprises such as Dong A Ton Joint Stock Company, Sacom Real Estate Joint Stock Company (Samland), etc. have moved to withdraw listing documents, cancel listing plans on HOSE. The reason is because the current economic situation of businesses is not positive. This causes the business to not meet the listing conditions as prescribed. Or because the listing plan is no longer consistent with the business’s orientation.
3. There are still many listed businesses planning to issue shares
Despite the difficult situation of the stock market in the first months of the year, many enterprises continued to issue shares.
The goal of enterprises when listing securities is to raise equity capital more conveniently. Therefore, many listed businesses “hungry for capital” continue their plans… With the desire to mobilize capital to implement unfinished projects, pay off debt, supplement working capital…
In fact, this capital raising has the potential to generate “fresh cash” flow for the business. Helping businesses manage while the bond channel is facing difficulties… The bank credit channel has increased interest rates, businesses cannot borrow credit due to strict lending conditions.
(Excerpt from Securities Investment Newspaper dated April 17, 2023)
Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn
