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Friday, March 29, 2024

Del Monte raises public offering size

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Del Monte Philippines Inc., the Philippine unit of Del Monte Pacific Ltd., increased the size of its planned initial public offering to 587.437 million secondary shares for a maximum of P29.88 each from the initial 559.464 million shares.

DMPI, according to the latest IPO prospectus posted on its website, now plans to raise as much as P17.55 billion in proceeds from the share sale, up from the initial estimated of P16.7 billion. The shares represent 21 percent of the company’s outstanding capital stock.

DMPI said shareholder Central American Resources Inc. would sell the shares  by way of secondary offering. CARI is a wholly- owned subsidiary of Del Monte Pacific Resources Ltd., which in turn is a a wholly-owned unit of DMPL.

DMPI plans to use net proceeds of the offering to partially repay certain facilities extended by DMPL, and refinance certain financial obligation of the DMPL Group to significantly reduce its leverage position.

BDO Unibank Inc. will serve as the issue manager, sole global coordinator and book runner of the offering. 

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Up to 70 percent of the shares will be sold to domestic investors and 30 percent  to foreign institutional and retail investors.

The company originally planned to conduct the IPO in April but deferred it to give way to the big-ticket rights offering of two banks. DMPI is now looking at June for the planned share sale.

DMPI is primarily engaged in the production and sale of food and beverage products in the Philippines under the Del Monte brand, such as fruit juices and juice drinks, packaged pineapple and mixed fruit, various tomato, spaghetti sauces and culinary mixes, and the export of these products under other brands.

It produces pineapple on a 25,000-hectare plantation in Bukidnon province and operates a processing facility with an annual capacity of 700,000 tons.

DMPI generated P26.7 billion in revenues in 2017, with two-thirds coming from the Philippines and the balance from export sales.

Majority owned by NutriAsia Pacific Ltd and Bluebell Group Holdings Ltd. of the Campos family, DMPL committed to hold on to at least 67 percent of its shareholding in DMPI for five years following the proposed public offering.

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