Del Monte Pacific in talks with banks for IPO of US, PH units
Campos group-led consumer giant Del Monte Pacific Ltd. (DMPL) is in talks with banks for the stock market debut of its subsidiaries in the Philippines and the United States.
DMPL had long planned the initial public offering (IPO) of its local unit, Del Monte Philippines Inc. (DMPI). Registration statements had been filed, but due to market volatility, the offerings were scrapped twice: in 2018 and 2021.
It also stated that the IPO of its American unit, Del Monte Foods Inc. (DMFI), was in the cards.
In a regulatory filing on Wednesday, DMPL said it could “generate cash from the planned IPOs of its subsidiaries, specifically DMFI and DMPI.”
“The company is in discussions with banks for these proposed IPOs subject to market conditions. This is expected to generate substantial cash for debt repayment,” it added.
As of end-April, DMPL’s shareholders’ equity stood at $494 million. Its net debt was now equivalent to 4.4 times its cash flow, improving from the 14.1 multiple in 2018.
