Tomato sauce and canned fruits maker Del Monte Philippines Incorporated (DMPI) filed for an initial public offering (IPO) worth $910 million (P44 billion), the Securities and Exchange Commission said on Wednesday, April 28.

DMPI is planning to offer up to 699.33 million common shares at a price of up to P54.80 each, with an overallotment option of up to 104 million shares.

This could be the second largest IPO in the Philippines, just behind Monde Nissin’s planned $1.5-billion (P72.45-billion) offering.

DMPI initially planned to go public in 2018 and aimed to raise P17.5 billion, but held off plans due to poor market conditions.

DMPI plans to use the funds to pay off loans of its parent company, Del Monte Pacific Limited. (READ: Amid lockdown issues, Del Monte says 40% of products are sold in PH)

“Our company has demonstrated resilience during the last 12 months, growing our operations and efficiency in a challenging year. This gives us the confidence to embark on the next phase of our journey. We firmly believe that this will better position us to take full advantage of our market leading position and to further accelerate our strategy across the region,” said Joselito Campos, DMPI chief executive officer.

DMPI said it captures 88% of the total market share in packaged pineapple in the Philippines, 87% in tomato sauce, 74% in packaged mixed fruit, and 39% in spaghetti sauce.

Citing figures from Nielsen, DMPI added that its health beverages and snacks business captures 48% of the total market share in the country.

It is also the largest fresh pineapple exporter to China, with 43.7% of market share by volume in 2020. It is among the biggest exporters of pineapple to Japan, South Korea, and the Middle East as well.

In 2020, DMPI’s net income stood at P3.4 billion, translating into a 10.9% profit margin.

“DMPI is well-positioned to become an independently listed company on the Philippine Stock Exchange. DMPI’s indirect parent company, Del Monte Pacific Ltd, expects to maintain the majority of its shareholding in the company, while SEA Diner, DMPL’s minority shareholder partner, also expects to retain a holding in DMPI,” the company said.

DMPI engaged Morgan Stanley and Credit Suisse (Singapore) as joint global coordinators and bookrunners for the transaction, while CLSA and DBS Bank will serve as joint international bookrunners. BDO Capital and Investment Corporation and BPI Capital Corporation will also serve as joint local lead underwriters and bookrunners. – Rappler.com