Del Monte Philippines defers IPO
MANILA, Philippines — Del Monte Pacific Ltd. (DMPL) has decided to delay the initial public offering (IPO) of its subsidiary, Del Monte Philippines Inc. (DMPI) due to the prevailing market volatility.
“Amidst a surge of COVID-19 cases in the Philippines and in the region, the Philippine Stock Exchange has been highly volatile in recent weeks, and the board of DMPL believes that it is in the best interests of the company, its shareholders, and potential investors to defer the listing until conditions improve,” DMPL said yesterday.
DMPI was supposed to start its IPO on Aug. 9 to 13 while the listing of the shares was scheduled on Aug. 23.
The government has placed the National Capital Region under a new round of stricter quarantine measures from Aug. 6 to 20.
DMPL said its board remains committed to listing DMPI and continues to believe strongly in the growth and resilience of its business.
“During this time, DMPL will continue discussions with potential investors and strategic partners that have expressed interest during the IPO process,” it said.
DMPI was looking to raise as much as P44.07 billion from a public offer of 699.3 million secondary common shares priced up to P54.80 per share, plus up to 104.9 million secondary common shares for the over-allotment option.
Gross proceeds, to be used for general corporate purposes, could amount to P38.32 billion at the maximum offer price.
Assuming that the over-allotment option is fully exercised, the offer can raise an additional P5.75 billion.
DMPL will eventually receive and use a part of the net proceeds for the repayment of loan facilities, redemption of certain preferred shares, and general corporate purposes.
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- export. Its Del Monte brand offers a line of ketchup, tomato sauce and paste, pasta, spaghetti sauce, and packaged pineapple products, among others.
- Latest
- Trending