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Home Business Top Business Public investors lost P3.48/share in Chelsea’s 2017 IPO

Public investors lost P3.48/share in Chelsea’s 2017 IPO

 

Sold. Rafael dela Cruz Consing Jr. is a senior vice president, chief finance officer and compliance officer of International Container Terminal Services Inc. (ICTSI), according to the port operator’s page on the website of the Philippine Stock Exchange (PSE).

In a disclosure, Consing said he had reduced the number of the ICTSI common shares he owned to seven after selling 123,520 of these in eight trades. These are broken down as follows: 20,000 shares at P117.60 each, 10,000 at P118 each and 3,520 at P119 each on Feb. 19, 2019; 25,000 at P119.80 each and 15,000 shares at P119.50 each on February 20; and 40,000 at P118.90 each, 4,490 at P119.00 each and 5,510 at P119.20 each on February 21.

On February 22, ICTSI common shares closed at P119.40 after opening the day’s session at P119, peaking at P119.90 and dropping to a low of P119, the stock’s opening price.

 

Bought. Fernando L. Gaspar, president and chief executive officer of Roxas & Co. Inc. (RCI), as well as a member of its eight-man board, increased his holdings in the company to 518,254 shares after buying 20,000 shares at P1.85 per share on Feb. 20, 2019.

On Jan. 20, 2019, he bought 28,000 RCI common shares at P1.84 each. This acquisition increased his ownership to 498,254 common shares. On January 16, he acquired in two trades 10,000 RCI common shares at P1.83 each and 20,000 common RCI common shares at P1.84 each. These additional shares increased his holdings to 428,254 shares.

On February 22, RCI common shares opened trading at P1.96, hit a high of P1.97, and dropped to a session low of P1.90 and closed at that level.

Annual meeting

The stockholders of Chelsea Logistics Holdings Corp. (CLC), who own 1.822 billion outstanding common shares, will hold their annual meeting at 8:30 a.m. at Park Inn by Radisson Davao in Davao City on March 15.

An information statement (IS) listed Udenna Corp. as the owner of 1.275 billion CLC common shares, or 70 percent of the total. The same filing said PCD Nominee Corp. holds 587.802 million CLC common shares, or 28.969 percent of the total.

In an explanatory note, Chelsea identified Udenna as “the holding company of the Uy family” and “is directly owned by spouses Dennis A. Uy and Cherilyn C. Uy.” On the other hand, “the 527,802,472 common shares under the name of PCD Nominees Corp. are owned by PCD participants acting for themselves or for their customers.”

In the same statement, Chelsea’s five highest-paid executives in 2018 were Chryss Alfonsus V. Damuy, president and CEO; Cherilyn C. Uy, treasurer; Ignacia S. Braga 4th,
vice president for finance; Irwin M. Montano, vice president for human resources; and Ma. Henedina V. San Juan. As a group, they were paid P34.3 million in 2018 — salary, P19.6 million; bonus, P8.6 million; and other compensation, P6.1 million.

In 2017, aside from Damuy, Mrs. Uy and Braga, Chelsea’s five highest-paid executives did not include Montano and San Juan yet. Instead, Chelsea had Arthur Kenneth Sy, president of Trans-Asia, and Ricky P. Victoria, vice president for ship management, tankers and tugs. As a group, the company paid them P20.3 million in salaries, but without the usual bonus and other perks.

Since Chelsea is yet to end 2019, it estimated the pays and perks of Damuy, Mrs. Uy, Braga, Montano and San Juan to reach P33.8 million. As a group, the company estimated their compensation to include salaries (P22.7 million), bonuses (P3.5 million), and others (P7.6 million).

For this year, Chelsea projected the salaries of “all other officers as a group unnamed” at P5.4 million and their bonuses at P800,000 for a total of P6.2 million. In 2018, the company paid them P4.3 million as salary and P900,000 as bonus for a total of P5.2 million. In 2017, the group received salaries amounting to P6.8 million, but without the usual bonuses and other compensation.

Chelsea’s IPO

Chelsea generated P5,837,613,240 from the sale of 546.593 million common shares — at P10.68 each — during the initial public offering (IPO) it held on Aug. 8, 2017. Net of the usual expenses, the company’s net proceeds totaled P5,272,347,772, which translates to P9.646 per CLC common share.

Of the net proceeds, Chelsea prepaid a P1,013,400,000 loan (19.221 percent) from the Bank of China. It also allocated P39,991,070 (0.756 percent) for the “acquisition of M/Tug Sung-An” and spent P18,163,590 (0.345 percent) as “down payment for MV Ocean Spirit.”

As a result of the loan prepayment, acquisition and down payment, only P4,200,793,112 or 79.676 percent of Chelsea’s net proceeds remained.

All this tells the public that Chelsea spent P565,265,468 — equivalent to 10.721 percent of the net proceeds — for the following: underwriting and selling commission, P239,801,737; advisory fees, P175,128,397; IPO taxes, P116,752,265; PSE listing application fees, P19,296,884; professional fees – legal and audit, P10,403,897; documentary stamps taxes, P2,732,965; and miscellaneous expenses, P1.149,323.

These expenses also meant it cost Chelsea P1.034 to sell 546.593 million CLC common shares to the public.

On February 22, Chelsea common shares opened trading at P6.25, peaked at P6.25, fell to a session low of P6.10 and closed at P6.19. Even at the stock’s 30-day high of P7.20, the public investors who bought IPO common shares in 2017 incurred a loss of P3.48 per Chelsea common share, or 32.584 percent of the P10.68 offer price if they still own their IPO shares.

esdperez@gmail.com

 

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