Business

SEC clears P44-B public debut of Del Monte PH

The Securities and Exchange Commission (SEC) has approved the first IPO worth up to P44.07 billion. Dollars planned for August by Campos’ family-run Del Monte Philippines Inc. (DMPI), one of the largest fresh pineapple producers in Asia.

This is potentially the second largest IPO in the history of the local cure, alongside Monde Nissin’s P48.6-B debut last June.

During the July 12 meeting, the SEC provided a banc clarity to the DMPI registration declaration covering approx. 2.797 billion ordinary shares to be listed and traded on the main board of the Philippine Stock Exchange (PSE).

Subject to further approval by PSE, DMPI seeks to complete the IPO from 9 to 13 August and list at the local price on 23 August.

The corresponding order for registration and permission to sell will be issued after the company has complied with the conditions set by the SEC.

DMPI’s registration statement covers 699.33 million in secondary ordinary shares, which will be offered to the public for as much as P54.80 per share. Share plus up to about 104.9 million additional secondary ordinary shares to cover excess demand.

Maximum offer price

Provided that the total allotment opportunity is utilized, 28.75 percent of DMPI’s shares will be owned by the public after this share trading.

The selling shareholders are Central American Resources Inc., a subsidiary of DMPI’s parent conglomerate Del Monte Pacific Ltd. (DMPL)., And SEA Diner Holdings (S) Pte Ltd., the Singapore-based consumer-focused fund manager that bought into the firm last year.

The gross proceeds from the IPO can amount to DKK 38.32 billion. At the maximum offer price. If the total sales opportunity is fully utilized, the offer can raise an additional P5.75 billion.

The parent conglomerate DMPL will eventually receive and use part of the net proceeds to repay loan facilities, redeem certain preferred shares and use for general business purposes.

DMPI is a food producer operating four main product segments, namely cooking and dessert, healthy beverages and snacks, high quality fresh fruit and packaged fruit and beverages for export. Its Del Monte brand offers, among other things, a range of ketchup, tomato sauce and pasta, pasta, spaghetti sauce and packaged pineapple products.

Robust

Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Ltd. will act as joint global coordinators and bookrunners for the offer, while CLSA Ltd., DBS Bank Ltd. and Jefferies Singapore Ltd. will be the joint international bookrunners.

BDO Capital & Investment Corp. and BPI Capital Corp. are the joint local leading insurance companies and bookrunners, while First Metro Investment Corp. is a colead local underwriter.

Operating in the food production area – one of the few industries that has proven resilient despite the protracted pandemic – DMPI’s proposed offer is more than twice as large as its discontinued IPO in 2018. In the fiscal year ending in April 2020, DMPI’s net income stood at P3.47 billion, an increase of 34.7 percent from the previous fiscal year. This was against the background of an 11% growth in revenue to P31.92 billion.

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