Del Monte Philippines Files for One of Country’s Biggest IPOs
(Bloomberg) -- Del Monte Philippines Inc., best known for its pineapple products, has filed for an initial public offering in Manila that could raise as much as 38.3 billion pesos ($791 million).
The company’s major shareholders, Del Monte Pacific Ltd. and SEA Diner Holdings Pte., plan to offer 699.3 million shares at a maximum price of 54.80 pesos each, according to the registration statement filed with the Philippine Securities and Exchange Commission on Wednesday. Del Monte Pacific will use the IPO proceeds to pay debt and redeem preferred shares.
At $791 million, Del Monte Philippines’ first-time share sale would be the second-biggest in the Southeast Asian nation after food maker Monde Nissin Corp., which is seeking to raise $1.3 billion, according to data compiled by Bloomberg. These two offerings could easily take the country’s IPO volume to the highest in at least 12 years. SM Investments Corp.’s 28.8 billion-peso IPO in 2005 was the biggest so far.
Del Monte Philippines has been in operation for 95 years and is a market leader in packaged pineapple and mixed fruit, ready-to-drink juices, tomato sauce and spaghetti sauce, according to its website. It has the rights to the Del Monte trademark for the Philippines for processed products and also sells products under brands such as S&W, Contadina and Today’s.
The company has a 26,000-hectare pineapple plantation and a frozen fruit processing facility in Bukidnon province in southern Philippines as well as a beverage bottling plant in Laguna province in the nation’s main Luzon island. Close to two-thirds of its sales are in the Philippines, while the rest comes from international market.
Del Monte Pacific has an 87% stake in the Philippine unit. In June 2018, it deferred Del Monte Philippines’ IPO which could have raised as much as 13.5 billion pesos, citing volatile market conditions.
Morgan Stanley, Credit Suisse Group AG, BDO Capital & Investment Corp. and BPI Capital are arranging the share sale.
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