In accordance with Article 25 of the Law on Securities, a public company is one of the following cases:
If a public company plan to increase its capital, it may issue stock for increase of share capital with finances from the equity. Especially those companies which are in good business situation and are highly appreciated by investors, this may considered as an efficient way to attract more capital.
Conditions apply to stock issuance for increase of share capital:
Public company issue stock to increase share capital with finances from the equity shall report to the State Securities Commission.
Report documents include:
Duration: Within 07 working days from the date of receipt of the report, if the State Securities Commission requires any adjustment or supplement, a written request shall be issued.
Within 07 working days from the date of receipt of full and valid documents, the State Securities Commission shall respond to the issuer in writing or reject in writing providing explanation.
Announcement on mass media:
Within 07 working days upon the State Securities Commission’s notification on its receipt of the full report, the issuer shall announce on the mass media about stock issuance for increase share of capital with finances from the equity at least 07 working days prior to the final date of registration.
The final date of registration shall not exceed 45 days upon the State Securities Commission’s notification on its receipt of the full report.
Registration of additional stocks:
Public company which has listed stock must register additional stocks issued for listing with the Stock Exchange in 15 days upon the State Securities Commission’s notification on the result of the stock issue to the issuer.
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