November 21, 2017 | MANILA, PHILIPPINES

August listing targeted by Chelsea Logistics

CHELSEA Logistics Corp. (CLC) plans to list its shares on the main board of the Philippine Stock Exchange (PSE) by Aug. 8, should it bag the bourse’s approval within the week.

The new date for listing was included in an updated prospectus posted on the company’s Web site after its application for an initial public offering (IPO) was approved by the Securities and Exchange Commission on July 11.

Under the latest time table, the offer period will run from July 24 to 31.

The offer period was originally slated for June 21-27, with listing initially targeted for July 5.

The shipping arm of businessman Dennis A. Uy’s Udenna Corp. hopes to raise up to P8 billion from the sale of 546.59 million primary shares at a maximum price of P14.63 each.

The company is now awaiting approval from the PSE.

Net proceeds of the offer amounting to P7.59 billion will be used to finance the firm’s expansion, bulk of which -- some P4 billion or 52.71% of net proceeds -- will be for the acquisition of other shipping and logistics companies.

About P2.485 billion will be earmarked for the acquisition of new vessels and ship equipment, some P858 million will go to general corporate purposes and P245 million will be used for the acquisition of port facilities, containers and terminal equipment.

CLC holds a stake in Negros Navigation Co., Inc., the firm with the largest stake in 2GO Group, Inc. at 88.31%.

2GO has currently been placed under scrutiny after it cut its net income for the full year 2015 and 2016, as well as for the first quarter of 2017 which was restated to show a net loss instead of a net profit.

The Securities and Exchange Commission (SEC) is now poised to conduct a “really big investigation” into the company’s financial condition, SEC Chairperson Teresita J. Herbosa told reporters on Tuesday last week.

Asked how the 2GO accounting mess could affect CLC’s IPO, BDO Capital Investment Corp. Eduardo V. Francisco gave a positive outlook. “It will proceed and be successful. Investors just got spooked but are coming back,” Mr. Francisco said.

BDO Capital is the lead underwriter, issue manager, and sole bookrunner for the offer.

Companies with pending IPO applications at the SEC are Xeleb Technologies, Inc. for P751.8 million, Audiowav Media, Inc. for P2.66 billion and Expresspay, Inc. for P528 million. -- Arra B. Francia