Chelsea gets final green light for IPO

CHELSEA LOGISTICS Holding Corp. has received final clearance to take its shares public, after securing approval from the Philippine Stock Exchange (PSE) on Wednesday.

In a memorandum issued yesterday, the PSE announced that it has given the green light for the P8-billion initial public offering (IPO) for Davao-based businessman Dennis A. Uy’s logistics firm.

The Securities and Exchange Commission approved its application on July 11.

A separate statement quoted Mr. Uy, Chelsea Logistics’ founder and chairman, as saying the PSE approval signaled recognition of “the soundness of our business” and its “potential to help accelerate the Philippine economy’s growth by delivering its logistics needs.”

The company will sell a total of 546.593 million new common shares for up to P14.63 each in an offer period that will run from July 24 to 31. Listing of shares, under ticker symbol “CLC,” on PSE’s main board is set for Aug. 8.

Shares to be offered to the public account for about 30% of Chelsea Logistics’ 1,821,977,615 outstanding common shares.

“The general economic and market conditions provide a favorable backdrop for capital raising,” a separate statement quoted PSE President and Chief Executive Officer Ramon S. Monzon as saying.

“We are optimistic that more companies will tap the stock market for their fund raising requirements in the coming months.”

BDO Capital and Investments Corp. will serve as the offer’s lead underwriter, issue manager and sole bookrunner.

“The offer presents an opportunity for the investing public to tap into an industry vital to the economy’s growth as well as help unlock potential for further expansion,” BDO Capital President Eduardo V. Francisco was quoted as saying in a statement.

The company expects to net P7.588 billion from the maiden sale which it will use to finance expansion, specifically for the acquisition of other shipping companies, fleets, upgrade of ports and port facilities, containers, machineries and other equipment.

The company will also use a portion for general corporate purposes.

The IPO forms part of the steps CLC is taking to achieve its goal of becoming the prime mover of vital goods, cargoes, and passengers in the country. The firm has one of largest tanker fleets in terms of capacity at 39,271.64 gross registered tonnage.

“Going public will further strengthen our position to serve the need for better shipping and logistics in a fast-growing economy…,” Mr. Uy said.

“We hope to contribute bigger to our economy’s growth as we move to becoming the country’s prime mover of vital goods, cargoes, and passenger, as the economic integration of the Association of Southeast Asian Nations opens more trade opportunities.”

Chelsea Logistics is the second firm under Mr. Uy’s Udenna Corp. to list its shares on the PSE, the first being Phoenix Petroleum Philippines, Inc. which celebrated its 10th listing anniversary last week. The firm also has a stake in 2GO Group, Inc. through its parent, Negros Navigation Company, Inc., which holds 88.31% of 2GO. —