SEC approves planned IPO of Del Monte Philippines

MANILA, Philippines – The Securities and Exchange Commission (SEC) on Thursday, May 24, approved the P17.5-billion initial public offering (IPO) of fruit canner Del Monte Philippines Incorporated (DMPI).

In a filing with the SEC, the local unit of Del Monte Pacific Limited will sell 587.437 million secondary shares at an offer price of up to P29.88 per share. This represents 21% of the firm's outstanding capital stock.

DMPI on Thursday said the offer shares will be sold by selling shareholder Central American Resources Incorporated (CARI) by way of secondary offering.

CARI is a wholly-owned subsidiary of Del Monte Pacific Resources Limited, which is in turn a subsidiary of Del Monte Pacific.

Net proceeds from the IPO will be used to partially fund certain facilities extended by Del Monte Pacific, and to refinance certain financial obligations of the group.

BDO Unibank Incorporated has been appointed as the issue manager, sole global coordinator, and bookrunner for the offering. 

About 70% of the offer shares are earmarked to be sold to domestic investors, while the remaining 30% will be sold to foreign institutional and retail investors.

Del Monte Philippines originally planned to debut on the Philippine Stock Exchange (PSE) back in April, but its IPO was deferred to give way to big-ticket rights offerings of two banks.

The fruit canner is now looking at June for its planned share sale.

Del Monte Philippines is engaged in the production and sale of food and beverage products in the country, like fruit juices and juice drinks, packaged pineapples and mixed fruits, as well as spaghetti sauces and culinary mixes. It also exports these products under other brands.

The company produces its pineapples in a 25,000-hectare plantation in Bukidnon and operates a processing facility with an annual capacity of 700,000 tons.

This is the second IPO approved by the SEC this year. Last week, it approved the IPO of DM Wenceslao & Associates Incorporated. – Rappler.com