Must-have contents in a Prospectus

The Prospectus or information disclosure means a physical or electronic document that contains accurate and objective information about the offering or listing of securities by an issuer. The Prospectus is also an indispensable document for registering to the public offering of securities and as an invite to the public to know, invest or buy the company’s securities. So, what contents are included in the Prospectus?

Through this article, BLawyers Vietnam will present the mandatory contents in the Prospectus as prescribed in the following cases:

1. In case of a public offering of shares and bonds, the Prospectus shall contain the following contents:

  1. Summary of the issuer, including its organizational structure, business operations, assets, financial status, Board of Directors, the Board of members, or the company owner, General Director (Director), Deputy General Director (Deputy Director), chief accountant, and shareholders (if any);
  2. Information about the offering and the offered securities, including: offering conditions, risk factors, estimated profit and dividends of the nearest year after the issuance, the issuance plan, and the plan for use of capital generated by the offering;
  3. The issuer’s financial statements of the latest 02 years;
  4. Other information (if any).

Read more: ESOP: The list of 30 FQAS under viewpoint of securities and employment.

2. In case of a public offering of fund certificates, the Prospectus shall contain the following contents:

  1. The type and scale of the securities investment fund;
  2. Investment targets, strategy, method, and procedures; investment limits and risk factors of the securities investment fund;
  3. Summary of the draft charter of the securities investment fund;
  4. The plan for the issuance of fund certificates and instructions on making the investment in the securities investment fund;
  5. Summary of the fund management company and the supervisory bank, regulations on trading with their related persons;
  6. Other information (if any).

Prospectus and executive prospectus are detailed guidance in Circular No. 98/2020/TT-BTC and prospectus form is regulated by Circular No. 118/2020/TT-BTC.

Read more: Warrants and some legal risks toward the owner of warrants.

Should you have any questions about the above contents, please revert to BLawyers Vietnam at consult@blawyersvn.com. We are more than happy to hear from you!

Date: 10 February 2022

Writer: Thu Tran

Maybe you want to read:

How Vietnamese laws control the related-party transactions in enterprises?

ESOP: The list of 30 FQAS under viewpoint of securities and employment

Public companies have no longer been granted an extension for the deadline for disclosure of information since 01 January 2021

blawyersvn-cta-image

Request a consultation

To schedule a meeting with BLawyers Vietnam’s attorneys, please call us or complete the intake form below. We will respond within 24 hours.

  • This field is for validation purposes and should be left unchanged.