initial public offerings

Del Monte’s P44-billion IPO gets SEC clearance

Ralf Rivas
Del Monte’s P44-billion IPO gets SEC clearance

IPO. Tomato sauce and canned fruits maker Del Monte Philippines Incorporated is given the pre-clearance for its planned P44-billion initial public offering.

Del Monte Philippines

The company will conduct the IPO from August 9 to 13 and debut on the PSE on August 23

Tomato sauce and canned fruits maker Del Monte Philippines Incorporated (DMPI) was given the pre-clearance for its planned P44-billion initial public offering (IPO).

The Securities and Exchange Commission (SEC) on Friday, July 16, said it had rendered effective the registration statement of DMPI covering 2.797 billion common shares to be listed and traded on the main board of the Philippine Stock Exchange (PSE).

DMPI will offer 699.3 million secondary common shares for public offering priced up to P54.80 per share, plus up to 104.899 million secondary common shares for the overallotment option.

The company will conduct the IPO from August 9 to 13 and debut on the PSE on August 23.

The company’s parent, Del Monte Pacific Limited, will eventually receive and use a part of the net proceeds for the repayment of loan facilities, redemption of certain preferred shares, and general corporate purposes. (READ: Amid lockdown issues, Del Monte says 40% of products are sold in PH)

Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Limited serve as joint global coordinators and bookrunners for the offer, while CLSA Limited, DBS Bank Ltd. and Jefferies Singapore Limited act as joint international bookrunners.

BDO Capital and BPI Capital are joint local lead underwriters and bookrunners. First Metro Investment Corporation has been tapped as local co-lead underwriter.

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. – Rappler.com

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author

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.