Chelsea Logistics embarks on major refleeting program

MANILA, Philippines - Chelsea Logistics Corp. (CLC), the logistics and shipping company of businessman Dennis Uy, will embark on a major refleeting and modernization program in line with its goal to become the top player in the industry.

 In an interview Tuesday night, Uy said CLC would focus on increasing its fleet routes.

 “Because of modernization — you have to cut the age (of vessels) to 35 from 50, you cannot import aging vessels,” said Uy, founder and chairman of the company.

 “We will modernize ahead of the others. We will get good vessels and we will get good routes,” he added.

 To raise funds for its IPO, Chelsea is embarking on an initial public offering in July to raise up to P8 billion.

 The offering involves the sale of 546.59 million new common shares at a maximum price of P14.63 each.

 Net proceeds, amounting to P7.58 billion, will cover the expansion of the company’s cargo and passenger shipping businesses organically as well as through acquisitions.

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

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, CLC 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 the approval by securities regulators.