Gelex Infra (GEL) Fully Deploys VND 2,882B IPO Proceeds, Plans VND 2,860B Private Placement

Overview

Gelex Infra (HOSE: GEL) reported that it has fully disbursed the more than VND 2,882 billion raised from its initial public offering of 100 million shares at an average price of VND 28,820 per share. The company also disclosed a board resolution approving a private placement of 100 million shares at VND 28,600 each, targeting VND 2,860 billion, most of which would repay borrowings owed to Gelex Group (HOSE: GEX).

Key Facts

• IPO: 100 million shares sold on 7 January 2026 at an average VND 28,820 per share, raising over VND 2,882 billion.
• IPO proceeds allocated: VND 900 billion to capitalise Titan Hải Phòng JSC for the Trấn Dương - Hòa Bình industrial park (Zone A, Phase 1); over VND 542 billion for financial restructuring; VND 1,440 billion to fund the Gia Bình International Airport project.
• Disbursement of the IPO proceeds was completed as of the disclosure date of 2 October 2026.
• Private placement: 100 million shares at VND 28,600 per share, targeting VND 2,860 billion, with a one-year transfer restriction.
• Minimum subscription threshold is 70% of the offered shares (70 million units); below that, the offering is cancelled.
• Placement proceeds earmarked: VND 2,431 billion to repay principal owed to Gelex Group (GEX) and VND 429 billion to Gelex Investment Company Limited.
• Three investors pre-committed: An Bình Securities Investment Fund Management JSC (49 million shares), VietinBank Fund Management One Member LLC (49 million shares) and individual shareholder Nguyễn Văn Hiếu (2 million shares).
• If completed, charter capital would rise from VND 8,900 billion to VND 9,900 billion.

What Happened

According to the company’s report on the use of proceeds from its public offering, filed under IPO registration certificate No. 448/GCN-UBCK issued by the Chairman of the State Securities Commission on 25 November 2025, Gelex Infra sold 100 million shares on 7 January 2026 at an average VND 28,820 per share. The filing states that, as of the information disclosure date of 2 October 2026, the entire amount raised had been disbursed.

Separately, the board of directors approved a private placement of 100 million shares to professional securities investors at VND 28,600 per share. The company expects to conduct the offering between the third quarter of 2026 and the second quarter of 2027, subject to approval by the State Securities Commission, with proceeds used from Q4 2026 through the end of Q2 2027. The stated purpose is to restructure existing borrowings taken on to fund the Gia Bình International Airport project, chiefly the VND 2,431 billion principal owed to Gelex Group.

Market Context

GEL closed at VND 27,900 on 4 October 2026, marginally below the VND 28,600 private placement price and the VND 28,820 IPO average, while parent Gelex Group (GEX) closed at VND 22,900. The news sits within a broader wave of Vietnamese infrastructure and industrial-park capital raising, as developers fund long-gestation airport and industrial-zone projects through equity rather than bank debt. The placement’s pricing at a slight discount to the last close, and its use for intra-group debt repayment, ties GEL’s funding story directly to GEX’s balance sheet.

Strategic Significance

For long-term holders, the transaction converts GEL’s project funding from related-party loans into permanent equity, reducing leverage at the subsidiary while returning VND 2,431 billion of cash to GEX. That matters because GEL’s asset base, the Trấn Dương - Hòa Bình industrial park and the Gia Bình airport, is capital-intensive and years from stabilised cash flow; a larger equity cushion lowers refinancing risk in the interim. The presence of two fund-management institutions taking 98 million of the 100 million placement shares signals institutional willingness to underwrite the story at VND 28,600, though the 70% minimum threshold leaves execution risk if market conditions deteriorate.

What to Watch

• State Securities Commission approval of the private placement and the actual launch date within the Q3 2026 to Q2 2027 window.
• Subscription results against the 70 million-share minimum, and whether An Bình and VietinBank fund management confirm their 49-million-share commitments.
• Progress disclosures on the Gia Bình International Airport and Trấn Dương - Hòa Bình industrial park projects.
• GEX filings on the receipt of the VND 2,431 billion repayment and any change to its own leverage profile.
• GEL’s charter capital update from VND 8,900 billion to VND 9,900 billion upon placement completion.