Shipping firm Chelsea Logistics Holdings Corp. formally listed at the Philippine Stock Exchange (PSE) on August 8. Trading under the ticker symbol CLC, the company opened the day with a share price of Php11.04, a 3.4-percent increase from its offer price of Php10.68. That brought its market capitalization up to Php20.1 billion from Php19.5 billion based on its offer price.
The company is chaired by Dennis Uy, a fast-rising Davao-based entrepreneur who has made several headlines in the past year for his multiple business acquisitions, ambitious projects and close ties with President Rodrigo Duterte. Among these is his entry in April into shipping firm 2GO Group Inc. through Chelsea Logistics. He now owns a 19.71-percent indirect stake in 2GO Group where he also serves as president and CEO.
Through holding company Udenna Corp., the 43-year-old Uy and his family of entrepreneurs own 70 percent of Chelsea Logistics’ 1.8 billion outstanding shares. With the opening price of Php11.04 per share, the value of the Uy family’s stake in the company grew by Php459 million to Php14.1 billion.
The company’s share price declined slightly to Php10.98 when the market closed midday, but that still marked a Php383 million increase in the market value of the Uy family’s stake from the offer price. However, at closing it further declined to Php10.56 per share, implying a Php153-million decrease in the market value of their stake.
“While we take this milestone (of listing in the PSE) as a challenge to work even harder, we will also see this as an opportunity to elevate the standards in logistics and sea transportation,” said Uy during the Chelsea Logistics listing ceremony.
Uy is no stranger to the PSE as he is also the president and CEO of listed petroleum distribution company Phoenix Petroleum Philippines Inc., which is chaired by his father, Domingo Uy. After 10 years of being listed, Phoenix Petroleum has grown as one of the largest independent oil companies in the country with a market capitalization of Php16.5 billion.
“For many of Chelsea’s new shareholders, they look forward to making Chelsea a haven for their investments knowing that the captain of the ship has had remarkable success in turning an oil company that started as a small player in Davao to a prominent brand that it present all over the country,” said Jose Pardo, chairman of the PSE.
Chelsea Logistics’ initial public offering (IPO) was three times oversubscribed, according to Uy. The company plans to use the funds raised in its IPO to purchase various shipping equipment such as vessels, containers and port facilities.
As well, the company mentioned that it plans to expand its footprint in the shipping and logistics industry through acquisitions of domestic businesses. In a press conference during the listing ceremony, Uy also mentioned the possibility of expanding the company’s operations regionally, though he specified that opportunities are in the tanker and petroleum side of the business.
Chelsea Logistics marks the fourth IPO of 2017, following the listings of Wilcon Depot Inc., Eagle Cement Corp. and Cebu Landmasters Inc.
This story was updated to add that the closing price fell below the offer price.
Lorenzo Kyle Subido is a staff writer of Entrepreneur PH