Chelsea Logistics to raise up to P8 B from IPO

MANILA, Philippines -  Chelsea Logistics Corp., the logistics company of businessman Dennis Uy, is embarking on an initial public offering in July to raise up to P8 billion.

The company has filed with the Securities and Exchange Commission a preliminary prospectus for the sale of 546.59 million new shares at a maximum price of P14.63 each.

Uy said the company would go public to accelerate the expansion of the company.

It expects to raise net proceeds of P7.58 billion, which will be used to fund the expansion of its cargo and passenger shipping businesses as well as acquisitions.

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

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

This will be the second company of Uy’s Udenna Group to go public after Phoenix Petroleum Philippines Inc. The IPO is seeking to join the main board of the Philippine Stock Exchange.

The company’s expansion aligns 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.

The company is targeting to list on July 5, subject to approval by the SEC and the PSE, among others.

It has tapped BDO Capital as the issue manager, lead underwriter and sole bookrunner.

CLC is the logistics arm of Udenna Corp., Uy’s holding company. Uy, who hails from Davao, has built and grown companies like Phoenix Petroleum into major industry players.

Udenna ventured into 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, Chelsea looks to further strengthen its presence in the logistics sector by creating synergies with publicly listed integrated transport solutions provider 2GO Group Inc.

Chelsea engages in the shipping transport business through its wholly owned subsidiaries Chelsea Shipping Corp. and Trans-Asia Shipping Lines Inc.