Fruit canner and grower Del Monte Philippines Inc. said Wednesday is delaying its planned P44.07-billion initial public offering amid volatile market conditions.
Del Monte Pacific Ltd., the parent company of DMPI, said in a disclosure to the stock exchange Wednesday it remained committed to the listing of DMPI and planned to return to the market once overall market conditions improved.
“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 that it is in the best interests of the Company, its shareholders and potential investors to defer the listing until conditions improve,” the company said.
“The board remains committed to listing DMPI and continues to believe strongly in the growth and resilience of its business. During this time, the Company will continue discussions with potential investors and strategic partners that have expressed interest during the IPO process,” it said.
DMPI, which is widely known for its pineapple products, was initially planning to conduct its public offering this month after obtaining regulatory approval.
Trading in the local stock market became volatile in the past weeks because of concerns about credit rating downgrade and threat of the highly-contagious Delta variant.
The bellwether Philippine Stock Exchange index dropped 3.83 percent last week after the government decided to place Metro Manila under lockdown. Since then, the index recovered and returned to 6,500 level.
DMPI was planning to offer 699.33 million secondary common shares with an overallotment option for another 104.899 million shares at an offer price of up to P54.80 apiece.
JennNet proceeds for the share sale will be used for repayment parent firm’s loans, redemption of certain preferred shares and general corporate purposes.