Philippines tanker and ro-pax group Chelsea Logistics Corp (CLC) is in talks with shipowners over vessel acquisitions after completing its PHP 5.8bn ($116m) IPO on Tuesday.
The Dennis Uy-controlled company saw its stock rise initially on its first day of trading in Manila.
The shares jumped 4.7% from the PHP 10.68 IPO price, with nearly 38m traded. The price was a 27% discount to the maximum PHP 14.63 quoted ahead of the deal.
But they later dropped 1% to PHP 10.56.
Company president Chryss Alfonsus Damuy said negotiations are underway with a "handful" of owners, with some discussions at an "advanced" stage, according to Bloomberg TV Philippines.
Chairman Uy said at a briefing that an acquisition will probably be completed this year, while he also plans to increase CLC's stake in ferry owner 2Go from 28% to 39%.
Logistics, shipyard and port investments are on the radar, while CLC is also exploring an e-commerce venture with SM Group, with which it controls 2Go.
Uy added that PHP 3.2bn of the PHP 5.8bn proceeds will be used for purchases.
He has said previously that about PHP 2.7bn will quickly go on seven vessels, with more likely.
The IPO was three times over-subscribed, with investors undeterred by the recent restating of 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.
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.
Following the IPO, investors have got their hands on 30% of CLC stock.
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.
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.
The company is committed to delivering a cash dividend of 20% of 2016's profit.