Del Monte Phl files P16.72-B IPO

The local unit of Del Monte Pacific Ltd. will embark on an initial public offering (IPO) this year to raise P16.72 billion.

In a disclosure to the Philippine Stock Exchange, Del Monte Pacific said Del Monte Philippines has submitted application documents to the Securities and Exchange Commission and the Philippine Stock Exchange for a proposed IPO of common shares comprising the sale of 20 percent of its issued capital by way of a secondary offer.

Del Monte Philippines plans to offer 559.464 million shares at a maximum offering price of P29.88 each.

The company said it would use the proceeds from the IPO primarily for debt repayment and general corporate purposes.

BDO Capital & Investment Corp. has been appointed as issue manager, sole global coordinator and sole bookrunner for the offering.

“The offering will be subject to receipt of the requisite regulatory approvals and market conditions,” Del Monte Pacific said.

“The company will be seeking shareholders’ approval for the offering at an extraordinary general meeting to be convened, and a circular for this purpose will be dispatched in due course,” it added.

Del Monte Pacific said approximately two-thirds of Del Monte Philippines’ sales come from the country, predominantly under the Del Monte brand, and one-third from the export markets under the S&W brand and through private labels.

Del Monte Philippines is a market leader in canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup, and is a household name in the country.

The company also operates one of the world’s largest fully-integrated pineapple operations and has been growing and processing pineapple for over 90 years, supporting its market leadership and high quality products.

Its major suppliers include tinplate suppliers from Japan and pineapple fruit from its own plantation in Bukidnon.