Del Monte PHL puts on hold IPO
The board of dual-listed Del Monte Pacific Ltd. has decided to delay the listing of its Philippine unit on the local bourse, citing adverse market conditions.
“In light of increased market volatility, in consultation with its advisors, has decided to delay the initial public offering [IPO] of its subsidiary, Del Monte Philippines Inc. [DMPI] on the Philippine Stock exchange,” the company said.
The company had also delayed the listing of its Philippine unit in 2018, citing volatile market conditions.
“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,” it 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.”
Del Monte Philippines has already secured pre-approval from the Securities and exchange Commission in July for its initial public offering (IPO), which it was supposed to raise as much as P44.07 billion.
According to its registration statement, it will sell to the public some 699.33 million priced up to P54.80 per share, plus up to 104.89 million in secondary common shares for the overallotment option. The shares offer shares are currently held by Central American Resources, Inc. and SEA Diner holdings (S) Pte Ltd.
Proceeds will be used by its parent firm, Del Monte Pacific, for the repayment of loan facilities, redemption of certain preferred shares and general corporate purposes.