DENNIS Uy-led Chelsea Logistics Holdings Corp. made a strong market debut on Tuesday but closed below its initial public offering (IPO) price of P10.68.
Chelsea ended the day at P10.56 apiece. It opened at P11.02 per share and hit an intraday high of P11.22 before succumbing by 1.12 percent.
The benchmark Philippine Stock Exchange Index (PSEi) fell by 0.07 percent on Tuesday, with analysts again noting a failure to crack the 8,000 level.
“We cannot judge it (Chelsea) based on this day yet. It can be [that]people who bought were disappointed but as long as there’s no negative news, we have to see after a few days,” Summit Securities Inc. President Harry Liu said.
“I think it’s just basically the first day reaction — we cannot judge that yet,” he added.
Regina Capital Development Corp. noted that Chelsea was on average performing above P10.68, but was hit by the PSEi’s drop.
Justino Calaycay Jr., senior research analyst at brokerage firm Philstocks, said Chelsea’s performance was “just in line, I think, with the general trends of recent IPOs.”
“Over the long term, we will have to see how the logistics sector plays out,” he said.
Chelsea raised P5.84 billion from its IPO, the proceeds from which will be used for fleet expansion; the purchase and upgrade of ports, port facilities, containers, machinery, equipment; and the acquisition of other shipping and logistics firms.