Del Monte Philippines revives listing plan, files for $907m IPO

Photo: Bloomberg

Del Monte Philippines Inc (DMPI), a wholly-owned subsidiary of global branded food and beverage firm Del Monte Pacific Ltd (DMPL), revived its listing plan to raise 44 billion pesos ($907 million) in its initial public offering, per its registration statement filing with the Securities and Exchange Commission (SEC).

The filing comes nearly three years after Del Monte Philippines shelved its IPO plans due to what it described as “adverse market conditions”.

In 2018, the company received approval from the SEC to raise about $333 million via an IPO but decided to defer the listing until market conditions improve.

In its filing Wednesday, the company said it intends to sell up to 699.33 million common shares in the offer, at a price of up to 54.8 pesos per share, with an over-allotment option of up to 104.90 million shares.

SEA Diner Holdings, which owns 13% of DMPL, and DMPL intend to offer up to 10% and 15% of their stake in Del Monte Philippines, respectively. SEA Diner acquired the stake from DMPL in January 2020 for $130 million. DMPL owns 87% through Central American Resources Inc. (CARI).

The filing shows that net proceeds that CARI will receive from the IPO will be declared as dividends to DMPL. DMPL will in turn use the funds for debt repayment and redemption of its Series A preference shares.

The timing of the offer, price, number of shares, and allocation of the proceeds will depend on market conditions and regulatory approvals, the company said.

Del Monte Philippines is engaged in the production and sale of food and beverage products – such as fruit juices and juice drinks, packaged pineapple and mixed fruit, various tomato, spaghetti sauces and culinary mixes – in the Philippines under the Del Monte brand and exports these products under the S&W brand.

It also operates one of the world’s largest fully-integrated pineapple operations and has been growing and processing pineapple for over 90 years.

Del Monte Philippines’ filing comes less than a week after food maker Monde Nissin Corp received approval from the Philippine Stock Exchange for its planned IPO that could raise about $1.3 billion, the country’s largest ever.

The proposed Monde Nissin IPO will be bigger than the total of about $809 million raised in the Philippines market from four listings in 2020.

If Del Monte’s IPO gets approval, it will join a flurry of IPOs that are expected to launch on the local stock market this year. Aside from Del Monte and Monde Nissin, other expected major listings this year include the National Grid Corporation of the Philippines, which could garner about $1 billion.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.