Chelsea Logistics eyes IPO


Philippine passenger and cargo carrier Chelsea Logistics Corporation plans to raise up to P8 billion through an initial public offering (IPO) in July to fund its expansion program.

The shipping arm of diversified holding company Udenna Corp. said it filed with the Securities and Exchange Commission on April 21 a preliminary prospectus for the offer and sale of 546.59 million new common shares at a maximum price of P14.63 each.

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

“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 added.

The IPO will pave the way for the company to join the Philippine Stock Exchange (PSE) under the ticker symbol “CLC” and allow the investing public to trade 30% of its outstanding shares after the offer. Chelsea on April 24 lodged with PSE an application to list the offer shares and the rest of its outstanding shares.

The expected P7.59 billion from the IPO will be largely earmarked for the expansion of the company’s cargo and passenger shipping businesses organically as well as through acquisitions.

Chelsea Logistics proposes to conduct the IPO from June 21 to June 27 and list the shares on PSE on July 5, subject to approval by regulatory agencies.

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

The shipping business of Udenna has since grown into one of the country’s largest shipping groups 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, Chelsea Logistics aims to strengthen its presence in the logistics sector by creating synergies with integrated transport solutions provider 2GO Group, Inc.

Udenna owns 31% of KGLI-NM Holdings Incorporated, which in turn owns 60% in 2GO’s parent firm, Negros Navigation Company Incorporated (NENACO). Uy has recently been elected as president and chief executive officer of 2Go.

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