Del Monte PH defers P44-B IPO plan

Campos family-led Del Monte Philippines Inc. (DMPI) has shelved its P44-billion initial public offering (IPO) plan, which was originally slated for this month, due to volatile market conditions.

While DMPI said it remained keen on debuting on the local bourse, it did not give a new timetable for the offering, which had been cleared by both the Philippine Stock Exchange (PSE) and Securities and Exchange Commission.

Increased market volatilty

For now, the board said the decision was to delay the IPO “in light of increased market volatility,” and in consultation with its advisers.

“Amidst a surge of COVID-19 cases in the Philippines and in the region, the PSE has been highly volatile in recent weeks, and the board believes it is in the best interests of the company, its shareholders and potential investors to defer the listing until conditions improve,” DMPI said in an advisory sent to the exchange.

Committed to list

However, DMPI said its board remained committed to listing DMPI and continued to “believe strongly in the growth and resilience of its business.”

DMPI said it would continue discussions with potential investors and strategic partners that had expressed interest during the IPO process.

The offering was supposed to run from Aug. 9 to 13, while the listing on the PSE was targeted for Aug. 23.

DMPI’s registration statement covered 699.33 million in secondary common shares up for public offering for as much as P54.80 per share, plus up to 104.9 million additional secondary common shares to cover excess demand. The selling shareholders were Central American Resources Inc. and SEA Diner Holdings (S) Pte Ltd.

Second attempt

This is the second time that DMPI has deferred its IPO plan. In 2018, it likewise cited market volatility for aborting its IPO plan.

The company’s conglomerate, Del Monte Pacific Ltd., planned to use part of the net proceeds to repay loans, redeem certain preferred shares and spend for general corporate purposes.

DMPI is a food manufacturer operating four main product segments: convenience cooking and dessert, healthy beverages and snacks, premium fresh fruit, and packaged fruit and beverages export. INQ