Chelsea Logistics Holdings Corp. (CLC) continues to receive interest from more investors, as it prepares to launch its initial public offering (IPO).
The company will offer 546,593,000 new common shares for P10.68 apiece starting July 24 and until July 31. It targets to debut on the Main Board of the Philippine Stock Exchange under the ticker symbol “CLC” on August 8.
Coming from an investors’ briefing in Makati City on July 21, the issue manager, lead underwriter and sole bookrunner, BDO Capital & Investment Corporation, took note of the increasing interest of both institutional and retail investors in the IPO.
BDO Capital President Eduardo V. Francisco has noted of the strong response of the investing public to the IPO even before the investors’ briefing.
“Investors are banking on the solid fundamentals, great potential and significance of Chelsea Logistics in the shipping and logistics industry, which we can only expect to continue growing,” Mr. Francisco said.
The IPO will allow the investing public to own 30% of the 1,821,977,615 outstanding common shares of CLC after the offer.
“Our offer comes with the opportunity for investors to contribute to the growth of the shipping and logistics industry and the economy as a whole,” CLC Founder and Chairman Dennis A. Uy said.
“Knowing how Chelsea can contribute bigger to our economy’s growth and the betterment of our fellow Filipinos make investing in the company all the more fulfilling.”
The company earmarked proceeds from the IPO 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.
“Such initiatives will make Chelsea even more stable to get through the waves and ride on the opportunities offered by our strongly growing economy and the increasing trade and commerce in the region,” Mr. Uy said.
CLC is working toward becoming the prime mover of vital goods, cargoes and passengers in the Philippines and eventually a regional player by expanding organically and creating synergies with 2GO Group, Inc. and affiliates within the Udenna 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.
In March, CLC acquired a 28.15% indirect economic interest in 2GO Group and subsequently took over its management. The SM Group would complete its purchase of a 34.5% stake in the publicly listed company’s parent, Negros Navigation Co., Inc. (Nenaco) later that month.
“Our leadership in the shipping and logistics industry, classed fleet, and experienced management team position us to take advantage of the solid fundamentals of the shipping and logistics industry,” Mr. Uy noted.
“We have come a long way since Chelsea started its journey 11 years ago. And we are not stopping here; we will continue sailing to new and better destinations.”
ABOUT THE COMPANY
CLC was organized and registered with the Philippine Securities and Exchange Commission 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 all of the outstanding capital stock of UIBV through a share swap agreement with Udenna Corp. UIBV owns 80% economic interests and 39.97% of the voting rights in KGLI-NM Holdings, Inc. KGLI-NM holds 39.85% economic interests and owns 60% of the voting stock in Nenaco, which in turn owns 88.31% of 2GO Group. Hence, CLC has 28.15% indirect economic interests in 2GO Group.