Chelsea Logistics eyes July 28 listing

MANILA, Philippines - Chelsea Logistics Corp., the shipping company of businessman Dennis Uy, is now looking to list by the end of the month instead of initial plans to make its market debut by early July.

The company plans to list on July 28, with its final price to be determined on July 13 while the public offer period will run from July 17 to 21, according to the latest timetable from the company.

The latest timetable may still change because of market conditions and regulatory approvals.

Chelsea was initially targeting to list on July 5.

It plans to sell up to 546 million primary shares at a maximum price of P14.63 each. It tapped BDO Capital & Investment Corp. as issue manager, book runner, and lead underwriter.

According to its registration statement, the company plans to spend P4 billion to acquire other shipping and logistics companies as it eyes to establish for the first time a presence in the Asian region as part of its growth strategies.

The company posted a net income of P132 million last year, a 35 percent jump from 2015’s P98 million, according to company documents.

Net sales grew P2.9 billion last year, up 16 percent from P2.5 billion a year ago.

It expects growth to continue as the company has laid down several strategies which include plans to “acquire medium-range tankers to capture the regional shipping markets.”

At present, the company accounts for a 14 percent share in tanker capacity in terms of gross registered tonnage and a leader in the RORO and passenger market with a 32 percent share.

It also plans to acquire larger RORO and passenger vessels and optimal sized tanker vessels and expand its tug operations to improve efficiency and profitability.

The company will also expand into new routes and is eyeing to acquire or upgrade ports, port equipment and facilities, machineries as well as shipyard.

Funding for these growth plans would come from the planned stock market debut.

Of the estimated net proceeds of P7.6 billion, the company will spend bulk or P4 billion for the acquisition of other shipping and logistics companies and P2.73 billion for the acquisition of new vessels and other equipment.

Chelsea has become the country’s largest shipping group since starting its business through Chelsea Shipping Corp. to support the operations of affiliate Phoenix Petroleum Philippines Inc. in 2006.

The company will seek to join three other companies that have listed on the exchange this year namely, Wilcon Depot, Eagle Cement and Cebu Landmasters Inc.