Del Monte defers IPO plan
MANILA, Philippines — Campos family-owned Del Monte Philippines Inc. (DMPI) has decided to postpone its planned initial public offering which was slated for June 27.
The company had already obtained the necessary approvals, but Del Monte Pacific Ltd. (DMPL), the parent firm, decided to defer the IPO because of prevailing market conditions.
“Market conditions continue to be volatile and the company has been advised by its bankers and advisors that it would be in the best interest of the company and DMPI to defer the offering until such time when market conditions improve,” DMPL said.
The benchmark Philippine Stock Exchange index (PSEi) has been volatile, falling below the 7,500 mark in recent weeks.
The planned IPO was supposed to raise as much as P17.55 billion.
According to its plan, the company would sell 587.437 million secondary shares at a price of up to P29.88 per share. After the offer, the company would have a public float of 21 percent.
Proceeds from the offer would be used to partially prepay or repay loans extended to DMPI amounting to P6.8 billion. Other proceeds would go to other payables amounting to P3.54 billion and refinancing needs amounting to P6 billion.
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 Food 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 food categories including major packaged fruit and vegetable categories.
- Latest
- Trending