Gelex Group's infrastructure arm plans IPO on improving financials, expanding portfolio

Gelex Group (HoSE: GEX), a leading multi-sector corporation in Vietnam, has announced plans to launch an IPO and list its infrastructure arm, Gelex Infrastructure (Gelex Infra), as early as Q4/2025.

The move comes amid a bullish Vietnamese stock market, with the VN-Index on the Ho Chi Minh Stock Exchange (HoSE) surging over 500 points in the past four months and record daily trading volumes of VND50-60 trillion ($2.28 billion).

Gelex Infra is one of two core subsidiaries in Gelex’s diversified ecosystem, alongside Gelex Electric (GEE). Gelex currently owns 79.1% of GELEX Infra, which has a charter capital of VND7.9 trillion ($299.72 million). The IPO aligns with Gelex’s strategy to restructure into a holding model and gradually list key subsidiaries.

Gelex previously listed Gelex Electric, which focuses on power equipment manufacturing and owns major brands such as CADIVI, THIBIDI, and HEM. In August 2024, GEE shares were officially listed on the HoSE.

Infrastructure & industrial real estate powerhouse

Gelex Infra operates in infrastructure, real estate, and building materials. Its portfolio includes controlling stakes in major players such as Viglacera (HoSE: VGC) - Vietnam’s leading industrial park and building materials company - and Song Da Water Investment JSC (UPCoM: VCW), which supplies water to a quarter of Hanoi’s population.

Viglacera owns 16 industrial parks with over 4,600 ha of land, attracting $20 billion in FDI from giants like Samsung, Canon, and Amkor. It also operates multiple factories across ceramics, glass, tiles, and sanitary ware.

In early 2025, Gelex Infra acquired a controlling stake in Petroleum Industrial Park Investment JSC (PXL), with plans to develop an 800-hectare data center hub. It also took over a 49% stake in Titan Corporation - a JV with Frasers Property (Singapore) - which is developing five projects totaling 100 ha across Bac Ninh, Hung Yen, and Quang Ninh in northern Vietnam.

Titan Hai Phong, an associate of Gelex Infra, recently received investment approval to develop phase 1 of Tran Duong-Hoa Binh Industrial Park (207.95 hectares) in the northern city of Hai Phong.

In utilities, Gelex Infra owns 62.46% of Song Da Water Investment JSC, which operates the 300,000 cubic meters per day Song Da water plant. Its second phase, doubling capacity to 600,000 cu.m a day, is set for completion by end-2025.

Financials improve across core segments

Gelex Infra's core business segments have shown strong recovery. In 2024, building materials posted a 23.8% year-on-year increase in pre-tax profit, reaching VND1,171 billion ($64.88 million). Industrial real estate also saw profit grow 6.4% to VND2,276 billion.

Despite a decline in clean water and renewable energy earnings due to Gelex transferring 75% of its renewable assets to Singapore-based Sembcorp, the synergies from this strategic partnership are expected to drive future growth.

In H1/2025, building materials revenue rose 6.6% to VND3,574 billion ($135.6 million) and gross profit jumped 33% to VND553 billion ($20.22 million).

Industrial real estate posted revenue of VND2,142 billion ($81.27 million) and gross profit of VND1,296 billion, up 9% and 36% year-on-year respectively.

Viglacera led the surge, with revenue up 14% year-on-year to VND6,083 billion ($230.78 million) and net profit more than doubling to VND838 billion.

Viglacera’s industrial and construction segment accounted for 70% of gross profit (VND1,403 billion, up 47% year-on-year), while building materials also saw sharp gains. Sanitary ware tripled gross profit to VND158 billion ($5.99 million), tiles rose 23% to VND307 billion, and clay bricks doubled to VND103 billion.

In the past year, Gelex Infra added 839 hectares to its industrial land bank, backed by in-principle government approval for three new industrial parks namely Doc Da Trang in Khanh Hoa province, Song Cong II in Thai Nguyen province, and Tran Yen in Lao Cai province.

On August 19, during the groundbreaking and inauguration ceremony for the country's 250 key projects to celebrate the 80th anniversary of the National Day (September 2, 1945-2025), Gelex Infra launched two industrial park projects: Tran Yen (Phase 1) and Doc Da Trang.

In the stock market, GEX closed Tuesday at VND55,100 ($2.1) per share, down 3.96% from the reference level.