From February 15, a state-owned company will be required to complete an initial public offering (IPO) within three months after its equitization plan is approved.
This time limit is set in the Finance Ministry’s Circular No. 196/2011/TT-BTC of December 26, 2011, guiding IPOs of equitized state-owed enterprises.
Accordingly, expenses for the equitization of an enterprise worth over VND 100 billion may not exceed VND 500 million.
The maximum expense levels are VND 400 million for an enterprise worth between VND 50 and 100 billion, VND 300 million for between VND 30 and 50 billion, and VND 200 million for under VND 30 billion.
Share price will be determined at auction, with a reserve price not lower than the face value of VND 10,000.
The price of preferential shares to be sold to company employees will be equal to 60 percent of the lowest winning bid or lowest price through negotiation, if the company holds public auctions before selling shares to its strategic partners.-