Issuing shares in Vietnam differed from procedures in other countries as Vietnamese companies offered shares exclusively to existing shareholders rather than seeking new ones, said deputy director of the State Securities Commission Bui Hoang Hai at the "Steps preparing for a successful IPO of enterprises" conference in Hanoi on Sept. 23.

The SSC drew attention to this distinction at the conference jointly held by itself, the business and financial news Bloomberg and Singapore 's Mileage Communications Group.

When collecting opinions of existing shareholders, almost all investors volunteered to buy additional shares, which led to successes for the majority of share issuers, Hai said. "This can be considered a method to force existing shareholders to buy additional shares," he added.

In other nations, shares are usually auctioned off to new shareholders, the public or strategic investors. To ensure success, issuers must then be transparent with all financial information and reports to demonstrate their potential and improve their image in the eyes of investors, Hai said.

Vietnamese enterprises actually did not pay much attention to how best to attract investors so as to make IPO successfully, he said.

To prepare for IPO, most companies only submit a prospectus and documents to meet the minimum requirements. "To make a successful IPO, companies need to map out long-term strategies," Hai said.

Nguyen Ngoc Canh, director of SSC's international co-operation department, said in the context of the slowed local stock market, firms were faced with many difficulties for their IPO despite profitable company performance.

Canh emphasised the crucial role professional consultants and securities firms play in helping issuers create transparent and comprehensive documents and financial reports as well as advising better management and business strategies.

"Issuers could publicise information in a timely manner and investors could understand more about their businesses, as a result they could auction shares or make IPO effectively," Canh said.

Yah Boh Tiong, chairman of Mileage Communications Group, advised firms to faciliate strong communication with shareholders, raise investor awareness of company profiles and business performance.

Strategies to improve companies' images should be undertaken carefully throughout three phases, including before IPO, leading up to IPO and post-IPO, Tiong said.

Chairman of the Singapore Securities Investors Association David Gerald said that it was essential to create knowledgeable investors through education and information, promote corporate transparency and corporate governance and safeguard investors' rights.

"Good corporate governance practices translate into good corporate performance," he said.

According to the SSC, the aggregate value of all shares issued to the public, employees, strategic partners and those auctioned at stock exchanges by companies in the first half of this year reached about 74.96 trillion VND (3.84 billion USD).

The conference drew about 100 businessmen, security companies, as well as local and international experts./.