Investors snapped up shares of shipping and logistics company Chelsea Logistics Holdings Corp., with its initial public offering oversubscribed three times, the lead underwriter handling the transaction said.
BDO Capital and Investments Corp. president Eduardo Francisco said demand from local institutional and retail investors for CLC shares was strong at both levels at the end of the offer period Monday.
“Several institutional buyers participated as they had demand from their retail and trust group. Brokers demand was also so strong and many were asking for additional shares,” Francisco said.
“Overall the IPO was three times oversubscribed,” he said.
Francisco said the company did not get cornerstone investors as demand from local investors was more than enough to cover the IPO.
The CLC shares will be listed on the main board of the Philippine Stock Exchange on Aug. 8.
It will be the fourth company to conduct an IPO this year after Wilcon Depot Inc., Eagle Cement Corp. and Cebu Landmasters Inc.
CLC is the the logistics and shipping arm of Udenna Corp., the holding company of Davao City-based businessman Dennis Uy. The businessman from Davao built and grown companies like Phoenix Petroleum into major industry players.
CLC is working toward becoming the prime mover of vital goods, cargoes and passengers in the Philippines and eventually a regional player by expanding organically and creating synergies with 2Go Group Inc. and affiliates within the Udenna Group.
Priced at P10.86 per share, CLC sold 546.593 million shares to raise P5.9 billion in fresh capital for the company. Post IPO, CLC will have a public float of 30 percent and a market capitalization of P19.9 billion.