CHEALSEA LOGISTICS DEBUTS AT PSE
Chelsea Logistics Holdings Corporation (CLC), an integrated logistics firm controlled by rising tycoon Dennis A. Uy, successfully debuted on the Philippine Stock Exchange following its R5.84 billion initial public offering (IPO).
The company offered 546.59 million new common shares to raise fresh capital as it pursues an aggressive expansion to better serve the growing shipping and logistics needs of the archipelago.
The shares were offered at P10.68 apiece, rose to as high as R11.22 per share upon listing and stayed up for most of the session before succumbing to profit-taking to close 1.13 percent lower at R10.56.
“The role of the shipping and logistics industry in sustaining and driving the growth of the economy of an archipelago like the Philippines is, to say the least, crucial,” CLC Chairman Dennis A. Uy said.
He added that “moving agricultural products, construction materials, petroleum and other vital goods as well as large numbers of people from one island to another requires a robust, efficient and reliable shipping industry.”
In this light, the company has moved to modernize and expand its fleet, serve and open more routes, and ensure the safety of its sea passengers.
Of the R5.50 billion it expects to net from the capital raising activity, CLC earmarked about R1.78 billion for fleet expansion, including the acquisition of a medium-range tanker that can carry 45 million to 55 million liters of bunker fuel across international waters.
The company also set aside R245 million for the acquisition and/or upgrade of ports, port facilities, containers, machineries and equipment to support its core business.
CLC also continues to look into the prospects of acquiring other shipping and logistics companies to expand its market reach, in conjunction to its planned fleet expansion. About R3.20 billion of the net proceeds was earmarked for this purpose.
The remaining R275 million will be used for general corporate purposes, including but not limited to, the payment of drydocking expenses, payment of trade payables and other use for the company’s working capital requirements.
“We are grateful to the investing public for helping us accelerate our expansion plans by supporting our maiden share sale to the investing public,” CLC President and Chief Executive Officer Chryss Alfonsus V. Damuy said.
He assured that, “we will not waste even an ounce of effort put into making our IPO a success. We commit to working harder to bring the company to greater heights.”