Davao-based businessman Dennis Uy-led shipping firm Chelsea Logistics and Infrastructure Holdings Corp. has raised P500 million from the issuance of preferred shares to an entity called Global Kingdom Investments Ltd.
This is in line with a capital build-up program approved by the company’s board, which voted to expand the company’s authorized capital to P3.5 billion from P2 billion, Chelsea disclosed to the Philippine Stock Exchange on Monday.
The new authorized capital is divided into 3.49 billion common shares and 10 million preferred shares, both with a par value of P1.
Of the increase in the authorized capital stock, Chelsea’s parent firm, Udenna Corp. committed to subscribe to 375 million common shares at P3.26 each, or a total of P1.22 billion. The valuation was based on the volume-weighted average price in the last 90 days.
Based on this valuation used for the upcoming subscription by Udenna, Chelsea has room to raise a little more than P10 billion if it were to sell all of the remaining shares out of the proposed increase in authorized capital.
The board also approved the subscription by Global Kingdom to 500,000 preferred shares of Chelsea through a private placement at P1,000 each.
Proceeds from the private placement will be used to finance current and future projects of the company and also for additional working capital, the disclosure said.
The issuance is exempted from registration under the Revised Securities Regulation Code, the disclosure said.
The Philippine Stock Exchange imposed a one-hour trading halt on Chelsea following the disclosure on the capital increase. It noted that Udenna’s subscription to new common shares was covered by the rule on additional listing of shares.
Shares of Chelsea slipped by 0.27 percent to close on Monday at P3.65 a share, giving it a market capitalization of P6.67 billion.
Chelsea, which listed on the stock exchange in 2017, is engaged in the shipping transport business. The company also has a 28.15-percent indirect economic interest in leading logistics firm 2GO Group Inc. INQ