Chelsea Logistics Holdings Corp. (CLC) has secured clearance to launch an initial public offering (IPO) aimed at fuelling its expansion.
The Board of Directors of The Philippine Stock Exchange, Inc. (PSE) on July 19 approved the company’s offer and sale of 546,593,000 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,” CLC Founder and Chairman Dennis A. Uy said.
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 & Investment Corporation serves as the issue manger, 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 IPO will allow the investing public to partake 30% of the 1,821,977,615 outstanding common shares of CLC after the offer.
“Going public will further strengthen our position to serve the need for better shipping and logistics in a fast-growing economy like the Philippines,” Mr. Uy said.
CLC expects to net P7,587,920,715 from the IPO. The fresh capital is earmarked for fleet expansion; purchase and/or upgrade of ports, port facilities, containers, and machineries and equipment; acquisition of other shipping and logistics firms; and general corporate purposes.
The company is working toward becoming the prime mover of vital goods, cargoes and passengers in the Philippines and eventually a regional player. Aside from expanding organically, it looks to create synergies with 2GO Group, Inc. and affiliates.
CLC 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. (CSC) to support the operations of the country’s leading independent and fastest-growing oil company – Phoenix Petroleum Philippines, Inc.
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,” Mr. Uy said.
ABOUT THE COMPANY
CLC was organized and registered with the Philippine Securities and Exchange Commission (SEC) on August 26, 2016 as Chelsea Shipping Group Corp. The SEC approved its change in corporate name to Chelsea Logistics Corp. on December 21, 2016 and to Chelsea Logistics Holdings Corp. on June 27, 2017.
The company engages in the shipping transport business through its wholly owned subsidiaries CSC and Trans-Asia Shipping Lines, Inc. (Trans-Asia).
CSC engages in the maritime conveyance or carriage of petroleum products, goods, wares and merchandise in the Philippines. Trans-Asia, meanwhile, engages in transporting passengers and cargo within Philippine territorial waters and/or in the high seas.
In March, CLC acquired the outstanding capital stock of Udenna Investments B.V. (UIBV) through a share swap agreement. UIBV controls KGLI-NM Holdings, Inc., which holds a significant stake in Negros Navigation Co., Inc., the parent company of 2GO Group, Inc.