Dennis Uy’s Chelsea Logistics plans P8B IPO

Riding on upbeat prospects for the logistics industry, businessman Dennis Uy-led shipping firm Chelsea Logistics Corp. (CLC) plans to raise as much as P8 billion from a stock market debut targeted in July this year.

CLC filed with the Securities and Exchange Commission (SEC) on April 21 a preliminary prospectus for the offer and sale of 546.593 million new common shares at a maximum price of P14.63 each.

The initial public offering, which will bring 30 percent of CLC’s outstanding shares to public hands, is intended to accelerate its expansion amid the country’s favorable growth trajectory.

This will be the second company of Uy’s Udenna Group to go public after Phoenix Petroleum Philippines Inc.

CLC has also submitted its IPO application to the Philippine Stock Exchange.

“We are accelerating the expansion of Chelsea Logistics, with a view to making it the prime mover of goods and passengers in the Philippines,” Uy, founder and chairman of the company, said in a press statement on Tuesday.

“As we move forward, we hope to contribute to our economy’s growth.”

The company’s expansion is seen aligned with initiatives to strengthen cooperation and promote trade within the Association of Southeast Asian Nations (ASEAN).

“As it expands further, Chelsea Logistics aims to support and facilitate more efficient trading within and outside the archipelago in light of ongoing efforts to strengthen the ASEAN Economic Community,” Uy said.

Net proceeds amounting to around P7.6 billion are expected to fund expansion of the company’s cargo and passenger shipping businesses organically and give it leeway to embark on new acquisitions.

CLC proposes to conduct the IPO from June 21 to June 27 and list the shares on the PSE by July 5, subject to approval by the SEC and PSE, among others.

The company has mandated BDO Capital serves as the issue manger, lead underwriter and sole bookrunner.

Udenna ventured in the logistics sector as early as 2006 through Chelsea Shipping Corp. to support the operations of Phoenix Petroleum, formerly Davao Oil Terminal and Services Corp.

The shipping business of Udenna has since grown into the country’s largest shipping group operating throughout the Philippines and Southeast Asia. It has the largest tanker fleet in terms of capacity with a total 39,271.64 gross registered tonnage.

Aside from advancing its expansion plans, CLC aims to strengthen its presence in the logistics sector by creating synergies with 2GO Group.