Take 2: Del Monte Files for P44.1 Billion IPO
Del Monte Philippines Inc has submitted its registration statement for an initial public offering worth up to $910 million (about P44.1 billion).
Based on the filing with the Securities and Exchange Commission (SEC), DMPI plans to sell up to 804.23 million shares (699.33 firm shares plus an over-allotment option of 104.899 million shares at a maximum offer price of P54.80 apiece.
DMPI had initially filed for an IPO in 2018 worth up to P13.5 billion but decided to postpone it due to weak markets. There were reports then, however, that the food and beverage company was unable to secure enough interest from local investors .
This time, the company plans to use the net proceeds from the offer “to partially repay certain facilities extended to Del Monte Pacific Limited (DMPL) and redeem DMPL’s Series A-1 Preference Shares; and by CARI (Central American Resources Inc, a wholly owned subsidiary of DMPL) to cover its share in the offer-related costs in respect of the shares being offered.”
“The planned IPO of Del Monte Philippines, Inc. is a moment of pride for the Board and the DMPI management team,” Joselito Campos, president and CEO of DMPI said in the filing. “It represents the realization of an ambition we have set—to provide the people of the Philippines with the opportunity to share in the continued growth and success of our Asia business.”
DMPI is one of the largest fresh pineapple growers in Asia, with an approximately 26,000-hectare plantation in the heart of the “pineapple belt” of the Philippines, Campos said, adding that the company expects to continue to expand this operation in the future, and broaden its product offering “into new categories such as dairy.”
According to Nielsen, DMPI had a leading market shares in the Philippines across a range of products in 2020: 88 percent in packaged pineapple, 87 percent in tomato sauce, 74 percent in packaged mixed fruit, and 39 percent in spaghetti sauce.
The company 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.
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