The Board of Directors of Gelex Electricity has approved a plan to offer 30 million shares to the public at an offering price of no less than VND30,000/share.
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| Gelex Electricity is preparing to increase capital. |
Gelex Electricity Joint Stock Company (code GEE - HoSE floor) announced the Resolution of the Board of Directors on implementing the plan to offer shares to the public and related contents.
Accordingly, the Board of Directors agreed to implement the plan to offer 30 million shares, equivalent to 10%, which was approved by the General Meeting of Shareholders at the beginning of the year. The public offering price of shares must not be lower than the average reference price of the 30 trading days immediately preceding the date of submitting the offering registration and must not be lower than VND 30,000/share.
The expected issuance time is in the third and fourth quarters of 2024, after being approved by the State Securities Commission. Along with that, the Board of Directors also approved the selection of Vietcap Securities Joint Stock Company (VCI) as the consulting unit for the public offering of shares.
If successful, this enterprise will attract up to VND900 billion. According to the capital increase plan approved by the general meeting of shareholders, most of the money raised will be used to repay the principal at Techcombank according to the credit contracts and contract appendices. In case one or more principal debts are due but the offering has not been completed, Gelex Power plans to mobilize other legal sources of loans to repay the due debts. Then, when the offering is completed, the proceeds will be used to repay those loans.
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| Purpose of capital use after Gelex Power issuance. |
As the largest shareholder owning 80% of charter capital, Gelex Group (code GEX-HoSE floor) will need to spend 720 billion VND if it exercises all rights to buy shares.
Recently, on August 21, Gelex approved a plan to contribute additional charter capital to Titan Corporation Company Limited. Titan Corporation was established in October 2022 with the main business lines in the fields of management consulting, consulting, brokerage, real estate auctions, and land use rights auctions. This is the company in which Gelex received a 49% transfer of shares from Frasers Property Investments (Vietnam) in early 2023. At the same time, Gelex has cooperated with Frasers Property Investments to develop industrial parks in the North, with a total investment in the first phase of about 6,000 billion VND.
GEE shares have just moved from UPCoM to HoSE on August 14 with a reference price of VND37,150/ share . With red dominating for more than a week of trading, GEE shares are trading at VND35,700/share.
Gelex Electricity was established in August 2016, the company manages the electrical equipment sector of Gelex Group with 8 subsidiaries, manufacturing and supplying a full range of products in the electricity industry value chain from transmission to distribution and civil. Among them, many brands have a long-standing reputation and have the number 1 market share in Vietnam such as: CADIVI electric cables, THIBIDI transformers, EMIC electrical measuring equipment.
According to the financial report for the second quarter of 2024, Gelex Power's consolidated net revenue reached VND5,310 billion, up 37.8% over the same period. Profit after tax of the parent company's shareholders reached VND516 billion, 6 times higher than the same period. In the first half of the year, the company's revenue reached VND9,030 billion, up 24% over the same period, net profit reached VND620 billion, up 295%. The company said this positive result was achieved thanks to its flexible sales policy and good inventory control in the context of fluctuating prices of key raw materials.
In 2024, Gelex Power targets consolidated net revenue of VND 18,381 billion and consolidated pre-tax profit of VND 1,158 billion, up 10.7% and 19.7% respectively compared to 2023. With pre-tax profit in the first half of the year of VND 821.5 billion, the Company has completed 70% of the yearly plan.
Source: https://baodautu.vn/vua-hoan-tat-chuyen-san-dien-luc-gelex-ruc-rich-tang-von-d223111.html
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