Philippines: Chelsea Logistics raises $100.8m via IPO

Visual from company's Facebook page.

By Tomas S. Noda III

August 8, 2017

Chelsea Logistics Holding Inc on Tuesday said it has raised over $100.8 million (P5.84 billion) in its initial public offering (IPO) debut on the Philippine Stock Exchange (PSE).

The company has offered 546.593 million with an oversubscribed new common shares opening at P11 apiece.

BDO Capital & Investment Corp served as issue manager, lead underwriter and sole bookrunner of the IPO. BA Investments and Holdings Inc, meanwhile, acted as a participating underwriter.

With its P5.84 billion in gross proceeds, Chelsea Logistics aims to pursue an aggressive expansion of its shipping and logistics business.

Chelsea Logistics has earmarked about P1.78 billion for fleet expansion, including the acquisition of a medium-range tanker that can carry 45 million to 55 million liters of bunker fuel across international waters.

The company, meanwhile, set aside P245 million for the acquisition and, or upgrade of ports, port facilities, containers, machineries and equipment to support its core business.

Chelsea Logistics also continues to look into the prospects of acquiring other shipping and logistics companies to expand its market reach, in conjunction to its planned fleet expansion. About P3.20 billion of the net proceeds was earmarked for this purpose.

The remaining P275 million will be used for general corporate purposes, including but not limited to, the payment of dry docking expenses, payment of trade payables and other use for the company’s working capital requirements.

Chelsea Logistics chairman Dennis A. Uy, tagged as “crucial” the role of the shipping and logistics industry in sustaining and driving the growth of the economy of an archipelago like the Philippines.

“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,” Uy said.

Also Read:

Philippines: Logistics firm LBC Express raises $50m from Crescent Point

Philippines: Phoenix Petroleum buys Petronas Energy, Duta for $126m

Philippines: Phoenix Petroleum disposes two companies for $59.7m

Philippines: SM buys stake in 2Go Group, enters logistics business

Dearth of IPOs in ‘fastest growing economy’ Philippines may end in 2017: Roel Refran

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
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