The IPO of Philippines shipping group Chelsea Logistics Corp (CLC) is garnering strong support from investors.

Owner Dennis Uy told The Star daily that the PHP 5.8bn ($115.82m) deal is "three times over-subscribed."

"We’ve received very strong demand from investors. We’re actually having problems covering all of the orders although it’s a happy one from our perspective,” he said.

He added investor response showed belief in strong prospects for the sector.

“We believe this is very telling of our bullish prospects for the shipping and logistics industry and of course, Chelsea. We believe we are better positioned to realise and ride on the industry’s growth,” he said.

Investors seemed to have been undeterred by the recent restating of ferry group 2Go's profits from the last three years after Uy bought into the company and became CEO.

The ro-pax company changed the 2015 net profit figure to PHP 109.13m, from PHP 1.08bn previously, Business World reported.

For 2016, 2Go said earnings were PHP 344.03m, down from PHP 1.34bn, while the first quarter of 2017 turned negative with a loss of PHP 264.86m, instead of a PHP 267.56m profit.

The board had agreed to fairly reflect the state of the company, Uy said at the time.

IPO manager BDO Capital & Investment Corp's president Eduardo Francisco said: “Demand was strong during the domestic offer and from the brokers. Broker demand was five times their allocations despite the initial hesitation of some investors when the 2Go accounting issues were disclosed.

"This shows that good companies and management can tap the market."

The IPO was priced at PHP 10.68 per share, a 27% discount to the maximum PHP 14.63 quoted ahead of the deal.

Investors will get their hands on 30% of the tanker company's stock.

CLC will spend up to PHP 4bn of the proceeds on the acquisition of other shipping and logistics companies.

About PHP 2.7bn will quickly go on seven vessels, with more likely.

The group, through Chelsea Shipping, Trans Asia Shipping and 2Go, has a fleet of 57 tankers and ro-paxes.

Plans include acquiring MR tankers to "capture regional shipping markets,” as well as larger ro-ro and passenger vessels, other tankers and tugs.

The company wants to expand into new routes and could acquire or upgrade ports and a shipyard.

CLC posted a net income of PHP 132m last year, a 35% jump from 2015’s PHP 98m, according to company documents.

Revenue rose to PHP 2.9bn, up 16%. It expects growth to continue.