July 20, 2021 at 08:25 pm
Jenniffer B. Austria
The Philippine Stock Exchange approved the P44.7-billion initial public offering of food giant Del Monte Philippines Inc. (DMPI).
DMPI, which is widely known for its pineapple products, is set to become the second largest IPO in the country this year after Monde Nissin Corp.’s P55.8 billion maiden share offering in May.
The company’s major shareholders, Del Monte Pacific Ltd. and SEA Diner Holdings Pte., plan to sell 699.33 million common shares with an over-allotment of another 104.899 million common shares at a maximum price of up to P54.80 each.
DMPI will have a public float of 28.75 percent after the IPO, assuming the over-alloment shares are fully exercised.
Of the total offer shares, about 489.53 million will be sold to foreign investors while 209.799 million shares will be allotted to domestic investors.
The offering period is set from Aug. 16 to 20 while the listing date is tentatively scheduled on Aug. 23
Net proceeds from the IPO will be used to pay debt and redeem preferred shares.
DMPI is a food manufacturer operating four main product segments, namely convenience cooking and dessert, healthy beverages and snacks, premium fresh fruit and packaged fruit and beverages exports. Its Del Monte brand offers a line of ketchup, tomato sauce and paste, pasta, spaghetti sauce, and packaged pineapple products, among others.
The company is also one of the largest fresh pineapple growers in Asia, with an approximately 26,000-hectare plantation in the Bukidnon.
DMPI has engaged Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Ltd. as joint global coordinators and book-runners of the offering, while CLSA Ltd., DBS Bank Ltd. and Jefferies Singapore Ltd. will act as joint international book-runners.
The company also hired BDO Capital and Investment Corp. and BPI Capital Corp. as joint local lead underwriters and book-runners. First Metro Investment Corp. has been tapped as local co-lead underwriter.
Despite the pandemic the country’s equities market, the PSE is seeing an IPO boom this year. It said capital raised through the stock market has reached P122.46 billion in the first six months of 2021, exceeding the P103.76 billon raised in the entire year of 2020.