Del Monte Philippines Plans to Go Public to Raise ₱44 Billion

Del Monte Philippines, Inc. (DMPI) shareholders filed for an initial public offering (IPO) of the shares that they own, which accounts for 28.75% of the company, to raise up to ₱44 billion, said the Securities and Exchange Commission (SEC) on Wednesday.

87% of DMPI is owned by publicly-listed Del Monte Pacific Ltd. (DMPL) through Central American Resources, Inc. (CARI), based on a registration statement filed with the SEC. The remaining 13% is owned by SEA Diner Holding (S).

A combined offering of up to 25% or 699.33 million DMPI shares is being intended with DMPL and SEA Diner offering up to 15% and up to 10% of their stake in DMPI, respectively

An over-allotment option of up to 15% of the total offer shares or 104.899 million DMPI shares is expected and shares will be sold at a maximum of ₱54.80 each.

The resulting net proceeds will be declared as dividends to DMPL in order to pay off loans and redeem its Series A Preference Shares.

“Our company has demonstrated resilience during the last 12 months, growing our operations and efficiency in a challenging year. This gives us the confidence to embark on the next phase of our journey. We firmly believe that this will better position us to take full advantage of our market leading position and to further accelerate our strategy across the region,” said DMPI chief executive officer Joselito Campos.

DMPI’s net income reached P3.4 billion in 2020, which equates to a 10.9% profit margin.

Market conditions and other circumstances surrounding the Offer will be the primary determinants for the timing of the Offer, final offer price, the final number of Offer Shares, and allocations of the proceeds.

Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Limited have been engaged to act as Joint Global Coordinators and Bookrunners. CLSA and DBS Bank will serve as Joint International Bookrunners, while BDO Capital & Investment Corporation and BPI Capital Corporation will act as Joint Local Lead Underwriters and Bookrunners.

Sources: Manila Bulletin, Rappler