In a text message to reporters, Securities and Exchange Commission Officer-in-Charge for the Office of Commission Secretary Armando A. Pan, Jr. confirmed the approval of Chelsea’s maiden offer.

The logistics arm of Mr. Uy’s Udenna Corp. will be listing a total of 1.82 billion common shares, composed of 546.59 million common shares and 1.272 billion issued and outstanding common shares priced at a maximum price of P14.63 apiece.

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

Chelsea’s IPO still needs the green light from the Philippine Stock Exchange.

Once listed, the company will be traded under the ticker “CLC.” The net proceeds of the offer will be used to finance the expansion of its cargo and passenger shipping businesses organically and through acquisitions. Chelsea will be the second company under the Udenna group to go public after Davao-based oil firm Phoenix Petroleum Philippines, Inc., which celebrated its 10th listing anniversary on Tuesday. To mark the milestone, President Rodrigo R. Duterte led the ceremonial bell ringing to close the trading day at the PSE, albeit two hours later than the actual closing.

Chelsea has two units in the shipping business, namely Chelsea Shipping Corp. which engages in maritime conveyance or carriage of petroleum products, goods, wares, and merchandise in the Philippines, and Trans-Asia Shipping Lines, which transports passengers and cargo both within Philippine territorial waters and/or in the high seas.

Summit Securities President Harry G. Liu said that the investing public has been keeping a close eye on Chelsea even if it has not been listed yet because of the positive outlook on the logistics sector.

“It’s very much being anticipated by the investing public that it’s a good issue to consider. Everybody seems to be talking about it at this stage even though it’s not yet out in the market,” Mr. Liu said in a phone interview.

SPOTLIGHT ON 2GO
Chelsea also has a stake in Negros Navigation Co., Inc. (Nenaco), the firm with the largest stake in 2GO Group, Inc. 2GO has been put on the spotlight this week after the new management, which includes the Udenna group and Henry Sy, Sr.’s SM group, released the results of a special audit on the shipping company’s financial statements for fiscal years 2015 and 2016, and the quarter ending March 31, 2017.

The new audit performed by SyCip, Gorres, and Velayo Co. revealed that 2GO’s actual profits in 2015 and 2016 were lower than the P1 billion it previously disclosed for both periods.

2GO restated its 2015 net income to P105.13 million, almost 90% lower than the P1.08 billion it previously reported. Meanwhile, its restated 2016 profits stood at P344.03 million, 74% lower than the P1.35 billion the company initially disclosed.

Despite this, Chelsea said in a statement that it continues to hold rosy prospects for 2GO, noting that the restated items were non-cash and non-recurring. “Thus, the prospective profitability of 2GO remains strong,” the company said.

“We’re very bullish (on Chelsea), it’s just that we’re a bit cautious with the recent issue with 2GO, because 2GO is a significant part of Chelsea,” Aristotle D. Reyes, Jr., equity trader of UPCC Securities Corp. said in a phone interview.

Mr. Reyes, however, explained that while shares in 2GO may affect trading in the next two days, the setback is only temporary.

“There’s a new management and we are very bullish also with what’s happened. It means that the new management is committed to good governance, good management with 2GO,” he added.

The trading suspension on 2GO shares, which started on Monday, will be lifted on Wednesday at 10 a.m.