SHARES of Chelsea Logistics Holdings Corp., controlled by Davao businessman Dennis A. Uy, swung low but didn’t sail high at its debut at the Philippine Stock Exchange (PSE) on Tuesday as investors decided to sell as the trading close.
Shares of Chelsea closed P0.12 lower to P10.56 during its first day of trading.
The shares were offered at P10.68 apiece, rose to as high as P11.22 per share upon listing and stayed up for most of the session before succumbing to profit-taking. The stock closed 1.13 percent lower.
“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.
The company offered 546.59 million new common shares, raising some P5.84 billion.
“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.
“The PSE is proud to provide a venue for Chelsea Logistics to realize its growth strategy as it utilizes funds raised from the IPO [initial public offering] for its acquisition and expansion plans,“ PSE Chairman Jose T. Pardo said in his welcome remarks during the ceremony. “On a bigger scale, Chelsea’s initiatives bode well for the logistics and transport sector, especially as maritime trade is expected to be among the country’s growth drivers.”
Of the P5.5 billion Chelsea expects to net from its capital raising activity, the company 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 also set aside P245 million for the acquisition and/or upgrade of ports, port facilities, containers, machineries and equipment to support its core business.
It is also in the hunt to acquire other shipping and logistics companies to expand its market reach, in conjunction to its planned fleet expansion. It earmarked about P3.2 billion for this initiative.
The remaining P275 million will be used for general corporate purposes, including the payment of drydocking expenses, payment of trade payables and other use for the company’s working capital requirements.
Chelsea parent Udenna Corp. started the shipping business in 2006 through Chelsea Shipping Corp. to support oil firm Phoenix Petroleum Philippines Inc.