Del Monte Philippines shelves P44-B IPO


Del Monte Pacific Limited has decided to postpone the planned P44 billion initial public offering of its subsidiary Del Monte Philippines, Inc. on the Philippine Stock Exchange.

The firm said in a disclosure to the PSE that, its Board of Directors decided to delay the IPO in consultation with its advisors and “in light of increased market volatility.”

“With the return of strict COVID lockdown measures in the Philippines from August 6, the Board believes that it is in the best interests of the Company, its shareholders and potential investors to defer the listing until conditions improve,” Del Monte said.

It added that, “The Board remains committed to listing DMPI and continues to believe strongly in the growth and resilience of its business.”

DMPL noted that, in the meantime, the “Company will continue discussions with potential investors and strategic partners that have expressed interest during the IPO process.”

Last July, the Securities and Exchange Commission (SEC) had approved the planned IPO of DMPI which planned to list 2.8 billion common shares on the Main Board of the PSE.

It planned to offer 699.33 million secondary common shares for up to P54.80 per share, plus up to 104.9 million secondary common shares for the overallotment option.

The shares offer shares are currently held by Central American Resources, Inc. and SEA Diner Holdings (S) Pte Ltd.

Gross proceeds from the IPO could amount to P38.32 billion at the maximum offer price. Assuming that the overallotment option is fully exercised, the offer can raise an additional P5.75 billion.

DMPI is a food manufacturer operating four main product segments, namely convenience cooking and dessert, healthy beverages and snacks, premium fresh fruit, and packaged fruit and beverages- export.

Its Del Monte brand offers a line of ketchup, tomato sauce and paste, pasta, spaghetti sauce, and packaged pineapple products, among others.