CHELSEA Logistics Corp. (CLC), the logistics arm of Udenna Corp., said on Tuesday it is planning to list publicly on the Philippine Stock Exchange (PSE) through an initial public offering in July (IPO) to raise P8 billion.
CLC will offer more than 546 million common shares at a maximum price of P14.63 each.
“We are accelerating the expansion of Chelsea Logistics with a view to making it the prime mover of goods and passengers in the Philippines,” said Dennis Uy, founder and chairman of the company.
“As we move forward, we hope to contribute to our economy’s growth,” he added.
The company’s expansion is in line with initiatives to strengthen cooperation and promote trade within the Association of Southeast Asian Nations (Asean), according to Uy.
CLC lodged with PSE on Monday an application to list the offer shares and the rest of its outstanding shares.
The company said it expects to raise net proceeds of P7.6 billion from the IPO, which will be used for the expansion of its cargo and passenger shipping businesses.
The IPO will run from June 21 to 27 and the company will debut on the local market on or about July 5, subject to the approval of the PSE and the Securities and Exchange Commission (SEC).
BDO Capital was appointed issue manger, lead underwriter and sole bookrunner.
CLC said it is also looking to further strengthen its presence in the logistics sector by creating synergies with publicly listed integrated transport solutions provider 2GO Group, Inc.
“Chelsea Logistics is well-positioned to take advantage of the e-commerce industry’s rise as well as the tourism sector’s continued growth,” Uy said.
“The government’s efforts to develop much needed infrastructure, attract more foreign investments and improve living conditions for Filipinos keep Chelsea Logistics on track to becoming a super shipping line and the country’s leading logistics company.”
CLC will be the second company of the Udenna Group to go public after Phoenix Petroleum Philippines, Inc.
CLC was organized and registered with the SEC on Aug. 26, 2016 as Chelsea Shipping Group Corp. It engages in the shipping transport business through its wholly owned subsidiaries Chelsea Shipping Corp. (CSC) and Trans-Asia Shipping Lines, Inc.