The massive P44-billion initial public offering (IPO) of processed food maker Del Monte Philippines, Incorporated (DMPI) will be delayed, as areas in the Philippines return to lockdown.

In a regulatory filing, listed Del Monte Pacific Limited said the board of directors decided to delay subsidiary DMPI’s IPO “in light of increased market volatility.”

“Amidst a surge of COVID-19 cases in the Philippines and in the region, the PSE (Philippine Stock Exchange) has been highly volatile in recent weeks, and 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 Pacific said.

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

DMPI was supposed to conduct its IPO beginning August 9, while the PSE debut should have been on August 23. DMPI got the go signal from the Securities and Exchange Commission and the PSE in mid-July.

This is not the first time that DMPI’s IPO was postponed. In 2018, the company planned to go public but deferred the move due to poor market conditions.

For two weeks starting August 6, Metro Manila will be placed under lockdown and only essential businesses and services will be open.

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– Rappler.com