Electrical equipment maker to hike capital to fund wind power

Shareholders of electrical equipment producer Gelex have green-lighted an 81 percent increase in its capital to VND7.8 trillion ($338 million) to fund wind power plants and hotels.

The Hanoi-based company, known for its electric cable brand Cadivi, will issue nearly 293 million shares to existing shareholders early next year at a rate of six new shares for every 10 held.

The issue will be priced at VND12,000, nearly 50 percent lower than the closing price on Wednesday.

The company said it hopes to raise VND3.5 trillion from the issuance, of which it plans to spend two-thirds on building several wind power plants in the central province of Quang Tri and a mixed-use commercial building in Hanoi in 2023.

The rest of the money will be used on bolster working capital.

Gelex forecasts pre-tax profits to fall by 10 percent this year to VND975 billion.