SEC approves P44-b initial public offering of Del Monte

The Securities and Exchange Commission said Friday it approved the P44-billion maiden share offering of fruit grower and canner Del Monte Philippines Inc.

The SEC said it approved DMPI’s initial public offering of 699.33 million secondary common shares with an over-allotment option for another 104.899 million shares at a price of up to P54.80 apiece, subject to the company’s compliance with certain remaining requirements.

“DMPI will receive the corresponding order of registration and permit to sell after complying with the conditions set by the SEC,” the corporate regulator said.

The company’s parent, Del Monte Pacific Limited, will eventually receive and use part of the net proceeds for the repayment of loans, redemption of certain preferred shares and general corporate purposes.

Latest submissions to the SEC showed the offering period would be set from Aug. 9 to 13, and the listing of the shares under the main board of the Philippine Stock Exchange scheduled on Aug. 23.

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

Its Del Monte brand offers a line of ketchup, tomato sauce and paste, pasta, spaghetti sauce and packaged pineapple products.

The company is one of the largest fresh pineapple growers in Asia, with a 26,000-hectare plantation in the Bukidnon province.

Aside from being a market leader in the ready-to-drink juices in the country, DMPI is the largest fresh pineapple exporter to China, with a 43.7-percent market share by volume of imported fresh pineapples in 2020. It also exports pineapples to Japan, South Korea and the Middle East.

DMPI engaged Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Limited as joint global coordinators and bookrunners for the offering, while CLSA Limited, DBS Bank Ltd. and Jefferies Singapore Limited will act as joint international bookrunners.

The company also hired BDO Capital and Investment Corp. and BPI Capital Corp. as joint local lead underwriters and bookrunners. First Metro Investment Corp. was tapped as local co-lead underwriter.

DMPI earlier said net income in the fiscal year 2021 ending April climbed 33 percent to P4.6 billion from a year ago on improved sales and lower expenses. DMPI said sales also climbed 8 percent to P34.5 billion.

Nearly two-thirds of DMPI’s sales are in the Philippines, with the balance in the international market.

“During FY2021, we focused on adapting to consumer trends through product innovation and digital marketing, while, at the same time, strengthening our operations and maximizing efficiencies,” DMPI chief executive Joselito Campos Jr. said.

DMPI also saw a 37-percent increase in pineapple exports to P5.85 billion in April from P4.2 billion a year ago, according to analytics and consulting company GlobalData.

Global Data said that DMCI’s pineapple exports to China reached 182 million kilograms in 2020, the biggest growth driver in the North Asian markets. China’s import of fresh pineapples from the Philippines grew at a compounded average growth rate of 18 percent from 2015 to 2020.

GlobalData, an analytics and consulting company, listed DMPI as the largest fresh pineapple exporter to China, accounting for 53 percent of the market in 2020.