Section 8: Process initial issuance of securities to the public

Section 8: Process initial issuance of securities to the public

Section 8: Process initial issuance of securities to the public

Typically the initial issuance of securities to the public shall comply with the following: - Organization shareholders to seek approval of the shareholders of the issuance of securities to the public, and unity of purpose to mobilize ...

Typically the initial issuance of securities to the public shall comply with the following steps:

- Organization of shareholders to seek approval of the shareholders of the issuance of securities to the public, and unity of purpose funding, the amount of capital needed, the type and number of intends to issue securities, capital structure projected release distributed objects: Board of Directors, current shareholders, the employees in the enterprise, outside the enterprise, the foreign ... - Society Board decided to establish a committee to prepare for the application for the issuance of securities to the public. The main function of the committee is prepared to prepare the application file submitted to the issuing agency for state management of securities and securities markets; choice underwriting organization (if required), the auditor and consultancy organizations and institutions along with building plans and issue a draft prospectus to provide investors.

 - The preparation of selected heads of the underwriters. In most cases the issuance of securities to the public for the first time, to ensure the success of the issue, the issuer must choose an underwriting organization. Underwriting organization with credibility and his extensive network will help to distribute the securities of the issuer held smoothly. Therefore, when the issue of securities to the public, the selection of underwriting organization is very important and crucial to the success or failure of the issue.

 - The head of underwriting consortium selected other members of the consortium. In case securities issuance volume is too large, beyond the capacity of an organization underwriting the organization underwriting the (sponsor organizations were selected) will choose to stand out other staff to proceed with its guarantee for the entire issue.

 - The combination preparation with underwriting, auditing firms and consulting organizations conduct securities valuation issue. The stock price is the most difficult stage and conducting the most complex issue of securities to the public. If the stock price is too high, it will be difficult to sell securities, even if the stock price is too low, it will cause damage to the issuer. Therefore, the valuation of securities that a reasonable buyer and seller is acceptable to both critical and need to be coordinated by the guarantee institution, auditor and consultant organizations companies.

 - Formal establishment of underwriting and contract underwriting to issuers.

 - The auditor certified the financial statements in applications for release.

- The issuer filing the Securities and Exchange Commission. Typically issuers will be answered on the grant or refuse to grant a license in the specified period from the date of filing to be issued in full and valid. While waiting for the State Securities Commission records reviewed, the issuer may use content in the preliminary prospectus for market exploration.

- After the release of licensed, the issuer shall issue a notice published in the mass media, and the public announcement of the official prospectus and the implementation of the stock distribution a certain period of time after being licensed. The time limit specified distribution vary with each country. in Vietnam, according to the Government Decree 48/Chinh of securities and securities markets, the time limit is 90 days, in case it deems reasonable and necessary, the State Securities Commission may extend extension.

 - Perform registration, storage, transfer and settlement of securities after the completion of the distribution of securities.

 - After the completion of the distribution of securities, issuers with underwriting organization must report the results to the Commission issuances of securities and funds to register with the competent authority.

 - If the issuer is eligible list, you can make a listing application submitted to the Securities Commission and the stock exchanges where the company is listed.

Part 1: Summary of Stock

Part 2: Introduction to stocks

Part 3: Introduction to Bonds

Part 4: Stock may convert

Part 5: Derivatives

Part 6: Primary Market

Part 7: First Issue of securities to the public (IPO)

Section 8: Process initial issuance of securities to the public

Section 9: Underwriting