PSE approves Dennis Uy’s Chelsea Logistics IPO

MANILA, Philippines – Dennis Uy’s Chelsea Logistics Holdings Corporation will debut in the Philippine Stock Exchange (PSE) on August 8, after it secured the final approval of the local bourse.

The PSE board on Wednesday, July 19, approved the company’s offer and sale of 546.59 million new common shares at a maximum price of P14.63 each, or P8 billion in total.

“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,” Uy, Chelsea Logistics founder and chairman, said in a statement.

Under the ticker symbol “CLC,” Chelsea Logistics may now proceed with its offer period scheduled July 24 to July 31 in time for the listing and start of trading of its shares on the bourse’s main board on August 8. 

The investing public may partake of  30% of the 1,821,977,615 outstanding common shares of Chelsea Logistics after the offer. (READ: Dennis Uy’s Chelsea Logistics gets SEC approval for IPO)

“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 said.

BDO Capital & Investment Corporation serves 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 Francisco said.

Proceeds
 
Chelsea Logistics expects to earn P7.59 billion from the initial public offering. The proceeds will go to fleet expansion, purchase of port facilities and machineries, acquisition of logistics and shipping firms, as well as general corporate purposes.

The company has been working toward becoming the prime mover of vital goods, cargos, and passengers in the Philippines – and eventually a regional player. Aside from expanding organically, it looks to create synergies with 2GO Group Incorporated and affiliates.
 
Chelsea Logistics is Udenna’s subsidiary for the shipping and logistics investments, including its substantial stake in integrated transport solutions provider 2GO Group.
 
Udenna started the shipping business in 2006 through Chelsea Shipping to support the operations of Phoenix Petroleum Philippines Incorporated.
 
The business has since grown into the country’s largest shipping group. It has the largest tanker fleet in terms of capacity with a total 39,271.64 gross registered tonnage.
 
“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 passengers, as the economic integration of the Association of Southeast Asian Nations opens more trade opportunities,” Uy said.
 
In March, Chelsea Logistics acquired the outstanding capital stock of Udenna Investments B.V. through a share swap agreement. Udenna Investments controls KGLI-NM Holdings Incorporated, which holds a significant stake in Negros Navigation Company Incorporated, the parent company of the 2GO Group. – Rappler.com