Transfer UPCOM floor to HOSE is an opportunity for businesses to raise capital effectively. This article provides details on the necessary factors to be successful when transferring floors.
Reasons Why Businesses Want Stocks to Move from UPCOM to HOSE
The HOSE (Ho Chi Minh City Stock Exchange) is more prestigious than the UPCOM and is a popular choice for businesses looking to improve their image. Companies listed on the HOSE often receive attention from many domestic and foreign investors thanks to the high liquidity and stability of the exchange.
The transfer process stock exchange provides an opportunity for businesses to re-evaluate their stock value in the market. Specifically, moving from UPCoM to HoSE often helps stocks achieve higher valuations, thanks to improved information transparency. This not only attracts more attention from many groups of investors but also increases the liquidity of stocks.
Notably, this floor change plays an important role in helping businesses mobilize capital more effectively, thereby expanding their scale of operations. For businesses with a solid foundation, development potential and competitive advantages in the industry, this is an attractive opportunity for investors to choose to hold stocks. They can benefit from short-term speculation or from medium and long-term investment strategies.
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However, not all stocks that are transferred to the exchange are guaranteed to bring added value to investors. In fact, the growth value of many stocks after being transferred to the exchange is often affected by speculative factors or unfounded information spread in the short term. There are even many cases where stocks then lose value sharply, reduce liquidity or fall into a state of "lying on the floor" continuously.
Conditions for Enterprises to Transfer UPCOM Floor to HOSE
Capital Conditions
To transfer UPCOM floor to HOSE, the company needs to ensure that the contributed charter capital at the time of registration is at least 120 billion VND. This is a requirement to ensure that the company has a solid financial foundation before listing on the HOSE.
Operating Time in the Form of Joint Stock Company (JSC)
The company must operate as a joint stock company (JSC) for at least two years before registering to transfer the floor. This ensures that the company has a stable operating foundation and management experience.
Business Results and Financial Transparency
Profit after tax on contributed capital of the most recent year must reach at least 5%.
No debt overdue for more than one year at the time of registration to transfer the floor from UPCOM to HOSE. Companies also need to commit to major shareholders to hold at least 20% voting shares within two years.
Percentage of Shares Owned by Public Investors
One of the important conditions when transferring the floor from UPCOM to HOSE is that at least 20% of voting shares must be held by at least 300 investors who are not major shareholders. This helps to increase transparency and the distribution of shares in the public market.
Other Regulations
Application for listing on HOSE must be carefully prepared and satisfy the requirements of the exchange.
The company's shares must have been traded on the UPCOM exchange for at least two years before registering to transfer the exchange.
The company must commit to publicly disclosing the debts of board members, management, and major shareholders to ensure transparency.
Steps in the Process of Transferring UPCOM to HOSE
Procedure transfer UPCOM floor to HOSE usually includes the following steps:
Prepare Floor Transfer Documents
The company needs to prepare complete legal and financial documents to register for the floor transfer. The documents must include audited financial statements, reports of the board of directors and documents related to stock ownership.
Register for Listing with HOSE Exchange
The company will submit the application to HOSE and wait for approval from the exchange. This process can take from several months to a year depending on the completeness of the application and specific regulations.
Assessment and Evaluation
HOSE will evaluate and appraise the application, including factors such as capital, profit, and public ownership ratio. If all requirements are met, the company will receive approval for listing.
Information Disclosure
The Company will publicly announce information about the floor transfer, including specific time and information related to stocks on the HOSE floor.
How Long Does It Take For Stocks To Transfer From UPCOM To HOSE?
How long does it take to transfer upcom floor to hose?? is a question that many investors are interested in about the stocks they have invested in. Normally, the time to transfer the floor from UPCOM to HOSE takes from 6 months to 1 year. This time includes the stages of preparing documents, waiting for approval and announcing information. To shorten the time, companies need to prepare documents completely, clearly and accurately to avoid adding and adjusting after submission.
Benefits When Businesses Move From UPCOM To HOSE
Job transfer UPCOM floor to HOSE bring many significant benefits to businesses:
Increase Brand Reputation and Value
When listed on the HOSE, the reputation of the enterprise will be enhanced in the eyes of investors. This helps the enterprise attract the attention of large investors and increase brand value.
Raising Capital Made Easier
HOSE is the trading place of many large domestic and foreign investors, so companies can raise capital more easily when listed on this floor.
Increase Stock Liquidity
The HOSE floor has high liquidity, making it easy for the company's shares to be traded and increase in value. This will benefit not only the company but also the investors.
Enhance Transparency and Governance
Listing on HOSE requires companies to comply with regulations on information disclosure and corporate governance, helping business operations become more transparent and professionally managed.
Difficulties When Moving UPCOM Floor to HOSE
Although bringing many benefits, moving the floor from UPCOM to HOSE also poses many challenges for businesses:
Increased Costs Incurred: The costs associated with listing on the HOSE, such as securities custody, corporate governance and information disclosure costs, can all be a financial burden for businesses.
Risk of Losing Control:Issuing additional shares to the public may result in dispersion of ownership and increase the risk of takeover by other investors.
Close Monitoring From Regulatory Agencies: When listed on HOSE, the company will have to comply with information disclosure regulations and be subject to close supervision from management agencies and shareholders, requiring the company to ensure transparency in all activities.
Conclude
Job transfer UPCOM floor to HOSE is a strategic decision that helps businesses enhance their reputation and create new capital raising opportunities. However, to do so successfully, companies need to fully meet the requirements. Conditions for transferring floor from UPCOM to HOSE and be prepared to face the challenges of cost, oversight, and ownership. Hopefully, the information on transfer UPCOM floor to HOSE and the specific conditions that HVA Group provided will help investors better understand the process and prepare thoroughly for this journey.
