The Securities and Exchange Commission approved the P8-billion initial public offering of Chelsea Logistics Holdings Corp., a company led by Davao City-based businessman Dennis Uy.
SEC commissioner Ephyro Luis Amatong confirmed in a text message the corporate regulator gave its green light on the IPO, despite the accounting issues involving 2Go Group Inc., an investee company of CLC.
“Our understanding is that there is no impact since 2Go financial were not consolidated into Chelsea’s financials. Instead, Chelsea reflected its investments in 2Go related entities under Nenaco and Udenna Corp.,” Amatong said.
SEC sources said CLC agreed to issue certification that the restatement of 2Go Group Inc.’s financial statements for the period 2016 and 2015 would not have an impact on its financial statements.
CLC acquired a significant interest in 2Go in March 2017. The new management of 2Go took over only in the second quarter of 2017 with a commitment to steering the integrated transport solutions provider to growth.
The latest registration statement filed with the SEC showed that CLC would set the final offer price of the company’s IPO on Thursday, or after it secured an approval also the Philippine Stock Exchange.
CLC is expected to set the final offer price of the IPO on Thursday. Offer period will be from July 17 to 21, while listing date was set on July 28.
CLC will offer 546.593 million new common shares at a maximum price of P14.63 each.
The fresh capital will be earmarked for the expansion of CLC’s cargo and passenger shipping businesses.
“Accordingly, the growth prospects of CLC remain intact. The company considers the strong interest of institutional and retail investors in its initial public offering as a testament to its good governance practices and sound strategies,” CLC said.