Del Monte Philippines plans P16.7-billion IPO

MANILA, Philippines – Del Monte Philippines Incorporated (DMPI), the local unit of fruit grower and canner Del Monte Pacific Limited Incorporated (DMPL), plans to raise as much P16.7 billion through an initial public offering (IPO).

DMPL said in a disclosure to the local bourse on Tuesday, February 6, that its local unit has filed before the Philippines’ Securities and Exchange Commission (SEC) its plan to offer up to 559.464 million shares, or about 20% of the firm’s total issued shares.

DMPL plans to offer its shares at P29.88 each.

The fruit grower and canner said proceeds will be used to partially repay certain loan facilities, which will allow Del Monte Philippines to strengthen its balance sheet.

The company has tapped BDO Capital & Investment Corporation to be the issue manager, sole global coordinator, and sole bookrunner for its planned IPO.

Around 2/3 of DMPI’s sales come from the Philippines under the Del Monte brand, and 1/3 from the export markets under the S&W brand and through private label. (READ: When Filipino firms expand abroad, it’s not always rosy)

Del Monte is a household name in the country, with bulk of the market share in canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce, and tomato ketchup.

Del Monte also operates one of the world’s largest fully-integrated pineapple operations. It has been growing and processing pineapple for over 90 years. 

DMPI owns a 23,000-hectare pineapple plantation in Mindanao, the world’s largest fully integrated pineapple operation, and another 700,000-ton capacity processing facility.

DMPL, which is also listed with the Singapore Stock Exchange (SGX), said it has obtained clearance from SGX said that planned public offering does not constitute chain listing its under listing manual.

Majority owned by NutriAsia Pacific Ltd and Bluebell Group Holdings Limited of the Campos family, DMPL has committed that it will continue to own at least 67% of its shareholding in DMPI for 5 years following the proposed public offering. 

Del Monte Philippines said it will seek shareholders’ approval for the IPO during a special stockholders meeting.

DMPI, the second largest subsidiary of DMPL, is the first company to file for the IPO with the corporate regulator this 2018.

The Philippine Stock Exchange had projected fund raising activity to reach P200 billion this 2018. – Rappler.com