Dragon Capital becomes major shareholder in Vietnam industrial major Gelex

Leading fund management company Dragon Capital has bought 2 million GEX shares in Vietnam industrial major Gelex, raising its ownership from 4.86% to 5.1%.

Of which, Amersham Industries Limited fund bought 1.23 million shares, Balestrand Limited fund 280,000 shares, Wareham Group Limited fund 200,000 shares, Grinling International Limited fund bought 120,000 shares, and Vietnam Enterprise Investments Limited fund 170,000 shares.

The transactions early this week made Dragon Capital a major shareholder in Gelex.

Gelex has set a consolidated net revenue target of VND37.46 trillion ($1.6 billion) in 2023, and pre-tax profit of VND1.27 trillion ($54.21 million), up 17% but down 39% respectively compared to 2022.

In the first quarter of this year, Gelex reported net revenue of VND6.41 trillion ($271.94 million), down 26% year-on-year, and after-tax profit of VND34.3 billion ($1.45 million), down 20 times.

As of March 31, the company's total assets had stood at VND52.62 trillion ($2.2 billion), of which cash and cash equivalents hit VND4.07 trillion ($172.46 million), up 29% compared to the beginning of the year.

At their 2023 annual general meeting of shareholders on April 26, Gelex leaders said that the development orientation for 2023 is to continue investing in industrial production and implementing key projects, especially industrial real estate.

Gelex has directed its member units to continue consolidating and growing their market share in the domestic market with strategic products, while promoting exports of electrical equipment and building materials.

The corporation said it will continue to research and invest in potential wind power projects, seek opportunities for cooperation with a number of partners and new projects, continue to look for M&A opportunities, and develop an appropriate governance strategy in post-M&A periods.

Gelex is negotiating with foreign partners to complete divestments from power projects.

The divestments are part of Gelex's restructuring policy to raise big revenues and find large joint venture partners to deploy offshore wind power projects in the future.

On the Ho Chi Minh Stock Exchange, GEX closed at VND19,350 ($0.82) on Friday.