Chelsea Logistics drops 1.12% below IPO price

Newly-listed Chelsea Logistics Holdings Corp. (CLC) closed more than 1 percent below its initial public offering price (IPO) on Tuesday as investors cashed in on gains from its market debut.

CLC opened at P11.04 on its first day of trading on the Philippine Stock Exchange, up 3.37 percent from an IPO of P10.68 per share.

It reached a high of P11.22, but finished at P10.56 – down P0.12 or 1.12 percent its offering price.

"CLC's maiden voyage was met with many headwinds ... It traded with a VWAP (volume-weighted average price) of P10.9632 with 136 million shares traded, meaning most sellers still on the average made a profit from the listing," Regina Capital Development Corp. said in a market commentary.

"Perhaps, some of this was also because of the index falling on weak note," the broker added.

Eagle Equities Inc. president Joseph Roxas said the market performance of CLC shares not reflect on the fundamentals of the company.

"It happens. It does not affect the company. They already got the money ... There is no requirement that all IPOs go up," Roxas said.

The company sold 546,593,000 new common shares, or 30 percent of its 1,821,977,615 outstanding common shares, raising as much as P5.84 billion during the offer period on July 24 to 31.

Proceeds from the IPO will pay for fleet expansion. The company also plans to buy and upgrade ports, port facilities, containers, and machinery and equipment, as well as other shipping and logistics firms. — VDS, GMA News