Philippines tycoon Dennis Uy is targeting shipping expansion through an IPO for his Chelsea Logistics Corp.
Uy said in a press release that the company plans to raise up to PHP 8bn ($160.85m) through a share sale in July.
This will fund an expansion programme that includes passenger and freight ro-ro group 2Go, of which Uy became CEO this month after his Udenna Corporation took an indirect 28% stake in the company.
Uy is the founder of independent oil company Phoenix Petroleum, which bought the 10-ship tanker fleet of Chelsea Shipping in 2012 for $34m. The company is now listed with 15 ships.
Chelsea Logistics will sell 546.59m new shares at a maximum price of PHP 14.63 each.
"As it expands further, Chelsea Logistics aims to support and facilitate more efficient trading within and outside the archipelago in light of ongoing efforts to strengthen the ASEAN Economic Community," chairman Uy said.
The shipowner is counting on Philippines president Rodrigo Duterte's pledge to develop infrastructure and attract more foreign investment.
Chelsea will run the IPO from 21 to 27 June, with BDO Capital as the issue manger, lead underwriter and sole bookrunner.
"Aside from creating synergies among 2Go, our existing shipping operations and other businesses in other sectors, we look forward to expanding Chelsea Logistics to become the prime mover of goods and passengers in the Philippines," Uy added.
Udenna's shipping business is reportedly the largest in the country. The tanker fleet totals 39,271 grt.
It owns 31% of KGLI-NM Holdings, which in turn has 60% of 2Go’s parent, Negros Navigation (Nenaco). It is also the parent of Phoenix and Chelsea.
2Go was formerly part of the Aboitiz group, but was sold to Nenaco in 2010 for $81m.
