CAMPOS-LED Del Monte Pacific Ltd. has secured regulatory approval for its P17.55-billion initial public offering (IPO) of its Philippine unit Del Monte Philippines Inc.
The Securities and Exchange Commission (SEC) has approved the IPO, which involved P587.43 million in secondary Del Monte Philippines Inc.’s shares being sold by Central American Resources Inc. The shares are priced at P29.88 per share.
Proceeds of the offer will be used to pay for the loans made by its parent firm Del Monte Pacific.
After the offer, Del Monte Philippines will have a public float of 21 percent.
BDO Capital and Investment Corp. was appointed as the issue manager, sole global coordinator and sole bookrunner for the offering.
About two-thirds of the sales of Del Monte Philippines come from the country and the rest from export under the S&W brand and private label brand.
Del Monte claims to be a market leader in the Philippines 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.
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.
“The market is starving for their first IPO of the year and Del Monte could be a welcome addition,” broker Regina Capital and Development Corp. said earlier.
“Depending on the pricing and the growth prospects of the company, then it would be attractive enough for both retail and institutional clients since they will be raising possibly more than $300 million. The company could readily use the proceeds since the agricultural sector has exhibited weak growth compared to the other constituents of GDP,” it added.