NEWLY-listed Chelsea Logistics Holdings Corp. rallied strong on the Philippine Stock Exchange on Tuesday, closing 2.81 percent higher during the morning session from its initial public offering (IPO) of P10.68 per share.
Chelsea closed P0.30 higher to P10.98 per share during the morning session.
BDO Capital and Investments Corp. President Ed Francisco said he sees a strong performance in Chelsea in the long term.
“This one I’m very optimistic kasi the fact that the IPO was successful, that means they have the fund to acquire and to grow. I think they will also disclose their numbers in the next few days and I think it should be very good naman so it will show nga that it will reward investors who’ve come in,” Francisco told The Manila Times.
“It’s very positive. It will be stronger and get bigger,” he added.
BDO Capital was chosen as the issue manager, lead underwriter, and sole bookrunner, Chelsea opened 3.37 percent higher to P11.02 on Tuesday.
It hit the highest at P11.20 apiece or 4.86 percent at 9:50 a.m.
“In this perspective, Chelsea’s performance is just in line, I think, with the general trends of recent IPOs,” Philstocks senior research analyst Justino Calaycay Jr. said.
“Over the long term, we will have to see how logistics sector plays out,” he added.
The company registered over 546 million common shares with the Securities and Exchange Commission (SEC).
The offer shares will account for 30 percent of the 1.82 billion outstanding common shares of the company.
It expects to raise as much as P8-billion for fleet expansion, the purchase and upgrade of ports, port facilities, containers, machinery, equipment, and acquisition of other shipping and logistics firms.
Chelsea is one of the logistics units of tycoon Dennis Uy. ANGELICA BALLESTEROS