Dennis Uy’s Chelsea Logistics prices IPO at discount

BUSINESSMAN Dennis A. Uy’s Chelsea Logistics Holdings Corp. (CLC) is looking to raise P5.84 billion in its stock market debut, as it priced its shares at a discount.

CLC priced its shares at P10.68 apiece, 37% lower than the maximum P14.63 per share it previously announced. The final price brings the total size of the offer to P5.84 billion, from the initial target of P8 billion.

“At such price, the book will be sufficiently covered and the shares of Chelsea Logistics will have a lot of room for upside in the equities market,” BDO Capital and Investment Corp. President Eduardo V. Francisco was quoted as saying in a statement.

BDO Capital serves as the offer’s issue manager, lead underwriter, and sole bookrunner.

CLC is offering 546.59 million common shares to the public, which comprises 30% of the company’s 1.821 billion outstanding common shares. The shares will be offered from July 24- 31, in time for the shipping company’s listing on the main board of the Philippine Stock Exchange (PSE) on Aug. 8. This will be the country’s fourth IPO this year.

“Chelsea Logistics has received strong interest from institutional investors and continues to attract more, as it proceeds with its initial public offer of common shares,” Mr. Francisco said.

CLC received clearance from the Philippine Stock Exchange during its board of directors’ meeting on July 19, following approval of the Securities and Exchange Commission last July 11.

The company will be using the net proceeds of the offer to fund its expansion, specifically for the acquisition of other shipping firms, acquisition of fleets, purchase and/or upgrade of ports, port facilities, containers, and machineries and equipment.

The group also aims to become a regional player by expanding organically, alongside creating synergies with 2GO Group, Inc. Mr. Uy is currently the chief executive officer of 2GO, which is a listed integrated transport solutions provider.

In April of this year, country’s richest man Henry Sy, Sr.’s SM Group also purchased a stake in 2GO by acquiring a 34.5% interest in its parent, Negros Navigation, Inc.

“As a group, CLC is well positioned to capitalize on the exciting prospects of the shipping and logistics industry... With the growth of the economy, there will surely be more movement of goods and people,” Mr. Francisco said. —