At least 4 firms to go public in 2019

MANILA, Philippines — At least four companies are expected to brave the stock market in 2019 after postponing their plans to go public due to volatile market conditions which started to worsen in the second half when the stock market index fell below the 7,500 mark.

“We’re hoping they will  push through with their IPOs next year,” said PSE president and chief executive officer  Ramon Monzon.

Campos-family owned Del Monte Philippines Inc. was the first to back out from a planned IPO this year.  It was supposed to go public last June.

DMPI had already obtained the approval of the PSE, the Securities and Exchange Commission (SEC) for the planned IPO which was supposed to raise as much as P17.55 billion in net proceeds.

However, Del Monte Pacific Ltd. (DMPI) decided to defer the IPO because of prevailing market conditions at the time.

The company had planned to sell 587.437 million secondary shares at a price of up to P29.88 per share. Post IPO, DMPI would have a public float of 21 percent. 

Proceeds from the offer were to be used to partially prepay or repay P6.8 billion loans, other payables amounting to P3.54 billion and another P6 billion for its refinancing needs.

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 foods categories including major packaged fruit and vegetable categories.

Consumer electronics manufacturing giant Cal-Comp Technology (Philippines) also deferred its P6.77 billion  IPO.

Cal-Comp was planning to sell up to 378 million primary common shares with an over-allotment option of up to 19.8 million common shares, or about 26.77 percent of the company’s total issued shares to the public. The IPO was supposed to happen in the second half.

The company is member of NKG, the largest Taiwanese investor in the Philippines. It has manufacturing facilities at the Lima Technology Center in Lipa City and at the First Philippine Industrial Park in Sto. Tomas, Batangas, which  currently employs over 6,000 employees.

Another company which postponed its IPO  was Fruitas Holdings Inc. (FHI), which is behind the popular Fruitas brand. It planned to undertake a P2 billion IPO in the latter part of the year.

FHI is the market leader in the Philippine food cart business. It was founded in 2002 when Yu opened his first kiosk in SM City Manila. The company soon began to open more branches in a few years’ time and introduced brands that have grown to be loved by Filipinos. It is now considered as the fastest growing food business in the country in terms of branches.

At present,  FHI carries well-known brands such as Fruitas Fresh From Babot’s Farm, Buko Ni Fruitas, Fruitas Ice Candy, De Original Jamaican Pattie and Juice Bar, Juice Avenue, The Mango Farm, Buko Loco, Johnn Lemon. Black Pearl, Shou, Friends Fries, and Halo-Halo Islands.

The company has 820 branches nationwide and is looking to double its network in three to five years to about 1,600 stores.

AirAsia Philippines likewise deferred its $250 million IPO after it took a hit from the six-month closure of Boracay from April to October this year.

D.M. Wenceslao was the only company that listed on the stock exchange this year following its  P8.1 billion IPO last June.