The corporate regulator has approved Del Monte Philippines, Inc.’s P44-billion initial public offering (IPO) plan in what could be the second-biggest share sale amid a coronavirus pandemic this year.
The company will get its registration order and permit to sell after complying with certain conditions, the Securities and Exchange Commission (SEC) said in a statement on Friday.
The commission at its July 15 meeting approved Del Monte’s registration statement covering almost 2.8 billion common shares to be listed and traded on the main board of the Philippine Stock Exchange (PSE).
The company, known for its tomato sauce products and packaged pineapple, seeks to conduct the IPO from Aug. 9 to 13. It plans to make PSE debut on Aug. 23, according to its latest SEC filing.
Monde Nissin Corp. raised P48.6 billion from the country’s largest IPO in June. More than P122 billion was raised in the sale of primary and secondary shares at the stock exchange in the first half, more than P104 billion for the entire 2020.
Del Monte Philippines shelved its IPO plan in 2018 due to volatile market conditions despite getting approval from the SEC and PSE.
The company was stronger than it was three years ago after expanding its footprint overseas, Del Monte Chief Operating Officer Luis F. Alejandro told the ABS-CBN News Channel earlier this month.
Del Monte Philippines will sell 699.33 million secondary common shares to the public for as much as P54.80 each, with an overallotment option of as much as 104.899 million common shares.
These are shares owned by Del Monte Pacific Ltd. units Central American Resources, Inc. and SEA Diner Holdings (S) Pte Ltd.
Parent Del Monte Pacific will get and use a portion of the proceeds to repay debt, redeem some preferred shares and for general corporate purposes.
Del Monte Philippines assigned Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Ltd. as joint global coordinators and bookrunners for the offer. CLSA Ltd., DBS Bank Ltd. and Jefferies Singapore Ltd. were named as joint international bookrunners.
BDO Capital Investment Corp. and BPI Capital Corp. were tapped as joint local lead underwriters and bookrunners, with First Metro Investment Corp. as the local co-lead underwriter.
Del Monte Pacific shares at the stock exchange fell by 2.6% or 40 centavos to close at P15 each. — Keren Concepcion G. Valmonte