Del Monte set to raise $150M from new shares

Del Monte Pacific Ltd., a giant in the canned goods and fresh produce business, is forging ahead with the issuance of its long-planned US-dollar denominated “preference” shares, a first in the Philippines.

The company said in a filing that it had received the 21s approval to list the shares, which would raise at least $150 million plus an option to raise another $10 million in case of high demand.

In its disclosure to the PSE, Del Monte said the proposed offer period would run from March 22 to 28 this year.

The shares are targeted for listing on April 7 this year.

Eduardo Francisco, president of issue manager BDO Capital and Investment Corp., said in a text message Monday that demand was expected to be high.

The base offer was comprised of 15 million shares plus an oversubscription option of 10 million shares. Fresh funds would help the company refinance debt.

“As this is a new instrument, there is still uncertainty as others are not aware of it,” he said. “I expect the issue to snowball once roadshows are in place.”

“We are excited as this will be the first dollar corporation traded in the Philippines,” he added.

The company, led by CEO Joselito Campos Jr., posted a net profit of $8.5 million in the quarter ending January this year. This was a reversal from the $4.8 million loss it booked in the same period in 2016. Del Monte said better sales in its Asian division offset the slowdown in the United States.

For the nine-month period through January, the company posted a net income of $19.9 million, slower than the $32.3 million posted in 2016 due to non-recurring items. Del Monte said core income stood at $26.7 million, almost three times its $9 million core profit for the same period in 2016.