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Friday, March 29, 2024

Shipping unit of Uy to conduct P8-b IPO

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Chelsea Logistics Corp., the shipping unit of Davao-based businessman Dennis Uy, is raising as much as P8 billion through an initial public offering to expand its logistics business.

Chelsea said in a statement it filed with the Securities and Exchange Commission a registration statement for the planned sale of 546.593 million new common shares at a maximum price of P14.63 each.

The company plans to use proceeds from the maiden share offering to finance the expansion of the company’s cargo and passenger shipping businesses organically and  through 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,” founder and chairman of the company. Uy also owns Phoenix Petroleum Philippines Inc.

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The company said its expansion was aligned with initiatives to strengthen cooperation and promote trade within the Association of Southeast Asian Nations.

“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.

This will be the second company of the Udenna Group to go public after Phoenix Petroleum. 

The offer shares, which account for 30 percent of the company’s outstanding authorized capital stock, will be listed under the main board of the Philippine Stock Exchange.

The company plans to conduct the IPO from June 21 to June 27 and debut on the PSE on or about July 5, subject to approval by the SEC and the bourse. 

BDO Capital serves as the issue manger, lead underwriter and sole bookrunner of the IPO.

Chelsea is the logistics arm of Udenna Corp., the holding company of Uy. The businessman from Davao has built and grown companies like Phoenix Petroleum into major industry players.

Udenna ventured in 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.

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