Understanding IPO: Requirements, Objectives, and Procedures

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Ngày cập nhật gần nhất: 15/4/2026

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What is IPO? Concept, features, conditions of IPO in Vietnam

This article details the concept, characteristics, and conditions for IPO in Vietnam, assisting users in grasping essential information for equity capitalization, bond issuance, and stock market listing of their companies.

For a long time, IPO has been a familiar term for those in the financial, banking, and securities investment fields. Despite its prevalence, many people (individuals, business owners looking to list their companies on the stock exchange) are still unfamiliar or unclear about the concept, features, and conditions for IPO.

Exploring the Concept and Conditions for IPO of Enterprises

To help our readers understand IPO concept better, along with related terminologies and notable features, Mytour has compiled an article titled: 'What is IPO?'. Let's delve into it.

What is IPO? Concept, features, conditions of IPO in Vietnam

1. What is IPO?

IPO (Initial Public Offering) is the initial sale of a company's stock to the public. This is considered a significant milestone when a company intends to list its shares on the stock market.

2. Similarities and Differences of Companies Before and After IPO

- Before IPO

Companies are typically private, established, funded, and operated by a few individuals such as founders, friends, relatives, etc. At this stage, only a few companies are invested in by venture capitalists.

At this point, if you want to buy shares of the company, you have to contact the company's owner and propose capital investment for business.

- After IPO

Public companies will transition from private entities to publicly traded ones with a larger number of investors and a greater volume of bonds. At this point, the company will have a broader operational scale, significant capital, and specific regulations regarding profit distribution. After IPO, companies will begin listing their shares on the stock exchange. Anyone (individuals, financial organizations, etc.) with the means can buy or sell company shares.

3. What Companies Gain and Lose from IPO

- Purpose of IPO

For most businesses, the IPO process of issuing shares and listing on the stock market serves several purposes such as:

+ Expanding capital, facilitating access to various sources of investment for business growth and development.
+ Building brand reputation, increasing company presence with customers, partners, thereby boosting business revenue and profitability.
+ The IPO process can be seen as a stepping stone to serve the process of mergers and acquisitions of potential smaller companies by larger corporations.

- Limitations of IPO

+ To issue shares to the market, businesses will incur certain fees: Business valuation appraisal fees, advertising fees, stock legitimization fees, etc.
+ When a business goes public through IPO, its annual business performance reports and financials will be publicly disclosed. Competitors can leverage this data to plan competition strategies and vie for market share with the business.
+ Continuously accountable for maintaining growth. CEOs and members of the business management board will have to calculate, take responsibility, and be subject to more scrutiny for each future business step.
+ The process of going public can reduce the number of shares owned by founders, operators. In some cases, the control of the company by the founders may be usurped and fall into the hands of new shareholders.

4. Conditions for IPO in Vietnam

In Vietnam, to list a company on the stock exchange, it must meet several conditions:

- Registered capital at the time of registration exceeds 10 billion VND
- Stable business operations, no losses
- Feasible capital utilization plan, proposed by the board of directors

For some businesses operating in specific sectors such as construction, foreign-invested enterprises, state-owned enterprises, the conditions for IPO in Vietnam are somewhat more stringent.

- State-owned enterprises must convert to joint-stock companies
- Construction companies must have at least one infrastructure investment project under the national socio-economic development plan of central ministries, branches, and centrally-run cities, guaranteed for issuance by financial institutions, securities. Subsequent capital raising rounds must also be controlled by banks.
- Foreign-invested enterprises must convert to joint-stock companies and establish a stock issuance dossier through the consultancy of securities companies.

5. Vietnam IPO Procedures

- Stock issuance application
- Company establishment license (copy)
- Business registration (copy)
- Company's charter capital
- Company's board of directors' resolution on share issuance
- Detailed reports on the company's business activities for the last 2 years.

6. List of Famous IPO Companies in Vietnam

- Saigon Alcohol Beverage Corporation (Sabeco)
- Petroleum Insurance Company (PVI)
- Vietnam National Petroleum Group (Petrolimex)
- Precious Metals and Gems Company Phu Nhuan (PNJ)
- Digital Retail Company FPT

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In this way, Mytour has provided a brief introduction to the concept, characteristics, and conditions for IPO in Vietnam,... If you are researching the procedures, processes, and the benefits, drawbacks of IPO in Vietnam, then this article by Mytour will be very helpful to you. If you have any questions about the content of the article, you can leave a comment below, and we will respond to you.

Participating in an IPO, you need to know the link to look up, view the stock price board daily and hourly to update the latest information about it, you can follow the links to view stock price boards here.

Frequently Asked Questions

What is the main purpose of conducting an IPO for a company?

The primary purpose of conducting an IPO is to raise capital for business growth and development. By going public, companies can access various investment sources, expand their operational scale, and build brand reputation among customers and partners.

What are the key conditions required for a company to IPO in Vietnam?

In Vietnam, a company must meet specific conditions to conduct an IPO, including having a registered capital exceeding 10 billion VND, stable business operations without losses, and a feasible capital utilization plan approved by the board of directors.

How does a company's status change before and after an IPO?

Before an IPO, companies are typically private and owned by a small group of individuals. After going public, they transition into publicly traded entities with a larger investor base, increased capital, and regulatory requirements for profit distribution.

What are some advantages and disadvantages of going public through an IPO?

Going public through an IPO offers advantages such as increased capital, improved brand visibility, and potential for mergers and acquisitions. However, it also presents disadvantages, including disclosure of financials, loss of control, and increased scrutiny from stakeholders.

Can you name some well-known companies that have undergone IPOs in Vietnam?

Yes, some notable companies that have undergone IPOs in Vietnam include Saigon Alcohol Beverage Corporation (Sabeco), Petroleum Insurance Company (PVI), and the Vietnam National Petroleum Group (Petrolimex). These companies have significantly contributed to the stock market's growth.

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