Accelerated Bookbuilding (ABB)

Accelerated Bookbuilding (ABB) is a method of offering shares within a very short timeframe, completed within several hours to a few working days.

This method focuses on collecting investor demand (bookbuilding), followed by the determination of an appropriate discounted offering price, and the execution of transactions on the next business day. ABB is commonly utilized in situations where major shareholders intend to divest shares within a short period or where a company seeks to raise capital on an expedited basis.

Key Features

  • Expedited execution: The subscription and transaction process is completed within a short timeframe
  • Target investors: Primarily institutional investors and professional investors
  • Discounted offering price: Typically priced at a discount to the prevailing market price 

Process Overview

  • Announcement of the Offering: The issuing company or major shareholder publicly announces the ABB transaction
  • Bookbuilding: Investors submit subscription orders indicating desired quantities
  • Offering Price: The appointed securities company aggregates demand and determines the final offering price
  • Allocation: Shares are allocated to investors based on the order of subscription submission (first-come, first-served), subject to availability
  • Trade Execution: Transactions are executed on the next working day following allocation.

Subscription

Step 1: Access the feature

Step 2: Select the stock

  • Review the list of upcoming, ongoing or completed deals and select the stock you want to subscribe to

Step 3: Subscription details

  • Input the subscription quantity and review and confirm the details

Step 4: Confirm the transaction

  • Complete the Professional Investor eligibility confirmation (if applicable) and authenticate the transaction using OTP/Smart OTP.

Step 5: Subscription Status 

  • Investors may monitor their subscription status via the History function, including: Registered, Allocated, ...

Notes

  • Allocation follow on a first-come, first-served basis until the offered volume is fully subscribed
  • The allocated quantity may be lower than the subscribed quantity
  • Investors are responsible for ensuring sufficient account balance for settlement on the next working day
  • Investors should monitor official notifications regarding allocation results from Vietcap

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