Del Monte Philippines may postpone share listing as weak market dulls demand

Del Monte Philippines
Photo: Bloomberg

Del Monte Philippines Inc is likely to postpone its planned initial public offering (IPO) of up to 13.5 billion pesos ($258 million) of shares as weak markets dampened demand, sources familiar with the matter said on Wednesday.

The Philippines’ stock market is Southeast Asia’s worst performer this year, hit by rising inflation and a weak currency.

The subsidiary of Del Monte Pacific Ltd had planned to raise funds in what would be the Philippines largest food and beverage IPO on record but it failed to secure enough interest from local investors, said the sources, who declined to be named as they were not authorised to speak to the media.

The IPO, the first in the Philippines this year, was set to be priced on Wednesday. About 30 percent of the shares were to be offered to foreign investors.

Reuters was not able to immediately reach Del Monte officials outside regular office hours.

The sources did not say when the IPO would go ahead. The Philippines’ broader index has fallen 10 percent this year.

Another Philippine company, property developer D.M. Wenceslao and Associates Inc, is scheduled to finalise on Friday the offer price for its IPO. It plans to raise as much as 10.87 billion pesos ($207 million).