Gelex Infrastructure Plans Private Placement of 100 Million Shares at VND 28,600 to Fund Gia Binh International Airport Project
Gelex Infrastructure Joint Stock Company (stock code: GEL) has officially announced its resolution approved by the Board of Directors regarding a major private placement plan. The company intends to issue 100 million common shares to professional securities investors. The strategic move is designed to raise substantial capital, with the entire net proceeds earmarked for debt restructuring associated with capital contributions for the ambitious Gia Binh International Airport investment project.
This corporate action marks a significant financial step for Gelex Infrastructure as it seeks to expand its portfolio into large-scale national infrastructure developments. By targeting professional investors, the company aims to secure stable, long-term capital while optimizing its capital structure and reducing its overall debt burden.
Pricing Dynamics and Market Context
Under the proposed private placement scheme, GEL has set the offering price at VND 28,600 per share. To put this into perspective, the offering price sits below the company’s trading performance on the market at the time of the announcement. During the trading session preceding the board resolution, GEL shares closed at VND 29,100 per share, reflecting a marginal premium of nearly 2% over the targeted private placement price.
Furthermore, the offering price represents a substantial valuation multiple relative to the company’s fundamental book value. According to Gelex Infrastructure’s audited financial statements, the book value per share stands at VND 11,344. This means the proposed private placement price is priced at approximately 2.5 times the book value, signaling strong confidence from the board regarding the company’s growth trajectory, asset quality, and future earning potential driven by upcoming infrastructure projects.
If the offering is successfully executed in its entirety, Gelex Infrastructure expects to generate gross proceeds of VND 2,860 billion. This influx of capital will elevate the company’s charter capital significantly, providing a robust financial cushion as it takes on capital-intensive ventures.
Detailed Allocation Plan for Capital Utilization
The core strategic driver behind this equity financing is the execution and financing of the Gia Binh International Airport construction project. Earlier in February, the Board of Directors of GEL announced its participation in the project, establishing a targeted capital contribution ratio of 20%.
The proceeds raised from the 100-million-share issuance will be deployed systematically to clear outstanding principal debt obligations linked directly to the parent ecosystem supporting this airport project. According to the detailed disbursement schedule outlined by the board, the funds will be allocated as follows:
- VND 2,431 billion will be utilized to pay off principal bank loans owed by Gelex Group Joint Stock Company (stock code: GEX). This repayment phase is scheduled to take place progressively from the fourth quarter of 2026 through the end of the second quarter of 2027.
- VND 429 billion will be directed toward settling principal loan obligations for Gelex Investment Company Limited. Similar to the parent group’s allocation, this debt clearance timeline spans from the fourth quarter of 2026 to the end of the second quarter of 2027.
By channeling the funds into debt restructuring for these specific entities within the wider corporate ecosystem, Gelex Infrastructure aims to relieve financial pressure, lower financing costs, and streamline its balance sheet ahead of the heavy capital outlays required during the construction phases of the Gia Binh airport development.
Allocation Strategy and Targeted Professional Investors
The private placement will not be distributed haphazardly; rather, Gelex Infrastructure has identified specific institutional and individual professional investors to absorb the 100 million shares. The distribution plan outlines three primary participants:
- An Binh Securities Investment Fund Management Joint Stock Company: Allocated 49 million shares, representing a targeted ownership stake of 4.95% of GEL’s post-offering charter capital.
- VietinBank Capital Management One Member Company Limited: Allocated 49 million shares, representing a 4.95% post-offering ownership stake.
- Mr. Nguyen Van Hieu: Allocated 2 million shares, representing a 0.2% stake in GEL following the completion of the offering.
Prior to this issuance, An Binh Fund and VietinBank Fund held zero shares in Gelex Infrastructure, marking their entry as strategic institutional stakeholders. Meanwhile, Mr. Nguyen Van Hieu already maintained a minor holding of 20,000 shares prior to the announcement.
In the event that these designated professional investors fail to register for or purchase their full allocations, the Board of Directors has been authorized by shareholders to redistribute the remaining shares to other qualified professional investors. Crucially, any secondary redistribution must adhere to a strict pricing floor, ensuring that shares are not sold below the baseline price of VND 28,600 per share.
Timeline, Regulatory Approvals, and Share Transfer Restrictions
The execution of the private placement is contingent upon regulatory green lights. Gelex Infrastructure anticipates rolling out the offering timeframe from the third quarter of 2026 through the second quarter of 2027, pending formal approval from the State Securities Commission of Vietnam (SSC).
Upon the successful conclusion of the offering, Gelex Infrastructure’s charter capital will increase to VND 9,900 billion, substantially expanding its equity base.
To maintain market stability and align the interests of the newly introduced strategic investors with the long-term vision of the company, regulatory guidelines and corporate resolutions dictate that all shares issued under this private placement will be subject to a strict one-year transfer restriction period, commencing from the official date of completion of the offering. This lock-up period prevents immediate short-term dumping of shares and underscores the investors’ commitment to the company’s multi-year infrastructure roadmap.
Broader Implications for Gelex Infrastructure and the Market
The capital-raising initiative by Gelex Infrastructure comes at a pivotal time when regulatory frameworks surrounding real estate, infrastructure development, and corporate financing are undergoing dynamic shifts. As institutional investors increasingly look toward tangible assets and national logistics networks—such as aviation infrastructure—projects like the Gia Binh International Airport are expected to serve as vital economic catalysts.
Industry analysts note that utilizing equity financing to restructure debts tied directly to strategic project investments is a pragmatic approach. It prevents the accumulation of toxic leverage while allowing the enterprise to participate in high-barrier-to-entry sectors that promise long-term recurring revenues.
As Gelex Infrastructure navigates the approval process with the State Securities Commission and prepares for the targeted disbursement windows extending into 2027, market participants will closely monitor the company’s ability to execute its capital-raising strategy without causing undue dilution to existing shareholders, while simultaneously driving forward its grand ambitions in Vietnam’s evolving aviation infrastructure landscape.
