THE Philippine Stock Exchange (PSE) on Wednesday has given its green light for the initial public offering (IPO) of Chelsea Logistics Holdings Corp., a shipping firm of Davao businessman Dennis A. Uy.
The company is selling some 546.59 million of primary shares at P14.63 apiece, or about P8 billion in gross proceeds.
After the IPO, the company’s public float will result to about 30 percent. “We thank the PSE for believing in the soundness of our business and for recognizing our potential to help accelerate the Philippine economy’s growth by delivering its logistics needs,” Chelsea Founder and Chairman Uy said.
“Going public will further strengthen our position to serve the need for better shipping and logistics in a fast-growing economy like the Philippines,” Uy added.
With the approval, the company may now proceed with its offer period scheduled July 24-31 in time for the listing and commencement of the trading of its shares on the main board of the PSE under the ticker symbol “CLC” on August 8.
BDO Capital and Investment Corp. has been picked as the issue manager, lead underwriter 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 its potential for further expansion,” BDO Capital President Eduardo V. Francisco said. The company expects to raise some P7.58 billion in net proceeds, which will be earmarked for fleet expansion, purchase, upgrade of ports, port facilities, containers, and machineries and equipment, acquisition of other shipping and logistics firms and general corporate purposes.
Aside from expanding organically, it looks to create synergies with 2Go Group Inc., as the Davao businessman now becomes one of the top players in the shipping industry in just a span of less than a decade.
Chelsea is the holding company for the Udenna Group’s operations and investments in the shipping and logistics industry, including its substantial stake in integrated transport solutions provider 2GO Group.
Udenna started the shipping business in 2006 through Chelsea Shipping Corp., but mainly to support the operations of Uy’s oil firm Phoenix Petroleum Philippines Inc.
Chelsea claims to have the largest tanker fleet in terms of capacity with a total 39,271 in gross registered tons.