Gelex Electric majority shareholder of new tech firm

Gelex Electric, under Vietnam's leading multi-sector corporation Gelex Group, has announced a board decision on capital contribution to establish a technology company, bringing its subsidiaries to 10.

According to the May 8 decision, the subsidiary, Gelex Technology, has a charter capital of VND50.84 billion ($1.96 million). Gelex Electric contributes nearly VND25.93 billion ($998,786), owning a 51% stake.

The company is located on the 23rd floor of the Gelex Tower at 52 Le Dai Hanh street, Hai Ba Trung district, Hanoi.

At is 2025 AGM in March, Gelex Group (HoSE: GEX) said it is seeking foreign partners for its subsidiaries to promote sustainable growth and expand globally.

At present, Gelex Electric (HoSE: GEE) is the only Gelex Group subsidiary listed on the market.

April 29, 2025 marked the final day for Gelex Electric shareholders to register for rights to receive new shares issued by the company to increase its charter capital.

The company aims to issue 61 million shares to existing shareholders at a ratio of 5:1, meaning for every five shares owned, shareholders have the right to buy one new share.

The rights to buy new shares are non-transferable, but the newly issued shares are tradable.

The total issuance, calculated at par value, amounts to VND610 billion ($24.49 million). The capital will be drawn from the share premium reported in Gelex Electric’s audited 2024 parent company financial statements.

If the issuance is successful, the number of GEE shares outstanding on the market will rise from 305 million to 366 million, boosting Gelex Electric’s charter capital from VND3.05 trillion to VND3.66 trillion ($140.96 million).

On April 10, Gelex Electric announced its plan to distribute the remaining portion of its 2024 cash dividend. The payout is set at 20% per share, or VND2,000 (8 U.S. cents) per share, with payment scheduled for May 14.

With 305 million outstanding shares, the company will allocate VND610 billion ($24 million) for the dividend distribution. Earlier, Gelex Electric paid the first-round 2024 cash dividend at a ratio of 10% per share, or VND1,000 (4 U.S. cents).

Including the total 30% cash dividend and a 20% bonus share issuance, GEE shareholders are set to receive a combined return of up to 50%.

According to its Q1/2025 financial report, Gelex Electric posted a pre-tax profit of VND608 billion ($23.41 million), up 311% year-on-year, more than four times the figure recorded in the same period last year.

On the HoSE, GEE closed Tuesday at VND85,000 ($3.27) per share.