SEC clears P17.5 billion Del Monte Philippines IPO

MANILA, Philippines — Campos family-owned Del Monte Philippines Inc. (DMPI) has obtained the green light from the Securities and Exchange Commission (SEC) for its initial public offering (IPO) that would raise as much as P17.552 billion in net proceeds.

The company will sell 587.437 million secondary shares at a price of up to P29.88 per share. After the offer, the company will have a public float of 21 percent.

DMPI’s parent company, DMPL, intends to use the proceeds from the offer to partially prepay or repay its loans extended to DMPI amounting to P6.8 billion. Proceeds would also go to other payables amounting to P3.544 billion and another P6 billion for its refinancing needs.

“The balance of proceeds, if any, will be used for general corporate purposes. The prepayment of these loans will allow the DMPL Group to deleverage and strengthen its balance sheet. Such prepayments are allowed under the loan facility agreement without any penalty,” DMPI said.

The company is one of the country’s major food players, selling canned fruit and juice drinks, tropical fruit, sauces and other condiments. It buys and sells products to and from afflicted companies such as GTL, S&W Fine Foods and Del Monte Foods Inc. (DMF). GTL is engaged in the business of trading food products under the Del Monte brand. S&W Fine Foods, meanwhile, is in charge of the sale and distribution of food products under the S&W brand. DMFI’s businesses, on the other hand, comprise a portfolio of consumer brands in numerous foods categories including major packaged fruit and vegetable categories.

DMPI is a wholly-owned subsidiary of DMPL, which is listed on both the Philippine Stock Exchange and Singapore Exchange Ltd.