Chelsea Logistics debuts on the stock market

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09:59 PM August 8th, 2017

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By: PR, August 8th, 2017 09:59 PM

CHELSEA Logistics Holdings Corp. (CLC), which operates the country’s largest tanker fleet and the shipping firm Trans-Asia Shipping Lines, Inc. (Trans-Asia), successfully debuted on the Philippine Stock Exchange with an oversubscribed initial public offering (IPO) of common shares.

CLC offered 546,593,000 new common shares to raise about P5.84 billion in gross proceeds, as it pursues an aggressive expansion to better serve the growing shipping and logistics needs of the archipelago, the company said in a statement.

CLC, as it moves to modernize and expand its fleet, serve and open more routes, and ensure the safety of its sea passengers, announced that of the P5.5 billion it expected to net from the IPO, P1.78 billion would be earmarked 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, would set aside P245 million for the acquisition and/or upgrade of ports, port facilities, containers, machineries and equipment to support its core business.

CLC, which recently taken over the operation of the 2GO fleet, 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 P3.2 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 drydocking expenses, payment of trade payables and other use for the company’s working capital requirements.

“We are grateful to the investing public for helping us accelerate our expansion plans by supporting our maiden share sale to the investing public,” CLC president and CEO Chryss Alfonsus V. Damuy said.

“We will not waste even an ounce of effort put into making our IPO a success. We commit to working harder to bring the company to greater heights.”
CLC is also 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.

In March, CLC acquired a 28.15 percent indirect economic interest in 2GO Group and subsequently took over its management. The SM Group would complete its purchase of a 34.5 percent stake in the publicly listed company’s parent, Negros Navigation Co., Inc. (Nenaco) later that month.

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