SEC OKs Chelsea Logistics’ P8B IPO

Dennis Uy

The Securities and Exchange Commission approved on Tuesday a plan by shipping firm Chelsea Logistics Corp. (CLC) to raise as much as P8 billion from a stock market debut targeted in July this year.

SEC Commission Secretary Arman Pan announced on Tuesday that the SEC had approved the registration statement filed by CLC involving the offering of 546.593 million new common shares at a maximum price of P14.63 each.

The initial public offering (IPO), 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 Davao-based businessman Dennis Uy’s Udenna Group to go public after Phoenix Petroleum Philippines Inc., which incidentally celebrated its 10th listing anniversary on Tuesday. In partnership with the SM group, Uy also now controls leading logistics provider 2GO Group Inc.

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

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 PSE, among others.

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