THE Philippine Stock Exchange on Wednesday approved the application of logistics firm Chelsea Logistics Holdings Corp. for an initial public offering (IPO) to raise some P8 billion in fresh funds for its planned fleet expansion and acquisitions.
Chelsea Logistics plans to offer 546.59 million new common shares at a maximum price of P14.63 per share.
The company said the net proceeds from the IPO of P7.58 billion will be used for fleet expansion, purchase and upgrade of ports, port facilities, containers, and machinery and equipment; acquisition of other shipping and logistics firms; and for general corporate purposes.
“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,” Chelsea founder and chairman Dennis Uy said.
“Going public will further strengthen our position to serve the need for better shipping and logistics in a fast-growing economy like the Philippines,” the Davao-based businessman added.
“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.”
The company has scheduled its offer date from July 24 to 31, and will officially list on the local bourse on August 8.
The investing public may partake of 30 percent of the 1.8 billion outstanding common shares of Chelsea after the offer.
“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 and Investments Corp. President Eduardo Francisco said.
BDO Capital has been tapped as the issue manager, lead underwriter and sole bookrunner of the IPO.
“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,” the company said.
Chelsea holds the logistics and shipping investments of Uy’s conglomerate Udenna Corp., including its substantial stake in integrated transport solutions provider 2GO Group.