Chelsea raises P5.8b, drops 1.1% on debut
Share price of Chelsea Logistics Holdings Corp., the shipping company of businessman Dennis Uy, fell on its debut at the Philippine Stock Exchange in line with the market’s decline Tuesday.
CLC closed at P10.56 Tuesday, down 1.1 percent from its initial public offering price of P10.86. The Philippine Stock Exchange index fell 0.1 percent.
CLC offered 546,593,000 new common shares to raise P5.84 billion in gross proceeds.
Uy said in an interview following the company’s listing ceremony CLC was in talks with a “handful of shipping companies” for possible acquisitions.
Uy said the planned acquisitions would boost the company’s earnings moving forward and add value to the company.
“The role of the shipping and logistics industry in sustaining and driving the growth of the economy of an archipelago like the Philippines is, to say the least, crucial,” Uy said.
“Moving agricultural products, construction materials, petroleum and other vital goods as well as large numbers of people from one island to another requires a robust, efficient and reliable shipping industry,” he said.
CLC earmarked P1.78 billion of the P5.5-billion IPO proceeds for fleet expansion, including the acquisition of a medium-range tanker that could carry 45 million to 55 million liters of bunker fuel across international waters.
The company also budgeted P245 million for the acquisition and/or upgrade of ports, port facilities, containers, machineries and equipment to support its core business.
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.
Udenna started its shipping business in 2006 through Chelsea Shipping Corp. to support the operations of the country’s leading independent and fastest-growing oil company, Phoenix Petroleum Philippines, Inc.
It currently has the largest tanker fleet in terms of capacity with a total of 39,271.64 gross registered tonnage.
CLC acquired a 28.15-percent indirect economic interest in 2Go Group in March and subsequently took over its management.