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Friday, March 29, 2024

Del Monte cuts IPO price to get more investors

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Del Monte Philippines Inc. reduced the price for its initial public offering to as low as P18 apiece from the original target of P29.88, according to one of the underwriters handling the deal.

BDO Capital and Investments Corp. president Eduardo Francisco said in a text message DMPI’s adjusted offer price range was now between P18 and P23 per share.

DMPI, at this price range, could raise between P10.5 billion and P13.5 billion in proceeds from the sale of up to 587.437 million in secondary shares. The final offering price will be set on June 6.

The offering period will be on June 8 to 18 and the listing date tentatively scheduled on June 25.

DMPI said the shares consist of secondary shares to be sold by shareholder Central American Resources Inc., which is a wholly-owned subsidiary of Del Monte Pacific Resources Limited.

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Del Monte Pacific Resources is a wholly-owned subsidiary of Del Monte Pacific Ltd., which is already a listed company.

Net proceeds from the offering will be used to partially prepay/repay certain facilities extended by DMPL and to refinance certain financial obligation of the DMPL group to significantly reduce its leverage position.

Aside from BDO Capital, DMPL also tapped BPI Capital Corp. and China Bank Capital Corp. as the joint domestic lead underwriters and DBS Bank Ltd. and Nomura as joint international lead underwriters.

DMPL plans to sell up to 70 percent of the offer shares to domestic investors and the remaining 30 percent to foreign institutional and retail investors.

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 in a 25,000-hectare plantation in Bukidnon and operates a processing facility with annual capacity of 700,000 tons.

DMPI generated P26.7 billion in revenues in the fiscal year 2017. Majority owned by NutriAsia Pacific Ltd. and Bluebell Group Holdings Limited of the Campos family, DMPL earlier committed to keep at least 67 percent of its shareholding in DMPI for five years following the proposed public offering.

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