Del Monte, AMAL prepare for IPOs

MANILA, Philippines — Food giant Del Monte Philippines Inc. (DMPI) has applied with the Securities and Exchange (SEC) for an initial public offering (IPO) of up to P44 billion worth of shares to pay for loans availed from local banks.

Corporate mediator Asian Mergers and Acquisition Link (AMAL) has likewise filed for its own IPO worth P260 million to expand its business reach across Southeast Asia.

In its registration statement, DMPI said it would sell 699 million common shares with an over-allotment option of about 105 million common shares at an offer price of P54.8 per share.

With this, DMPI looks to secure up to P38.32 billion in total proceeds.

About 61 percent or roughly P22 billion, of the net proceeds will be allocated to repay the loans extended to Del Monte Pacific Ltd. (DMPL) by BDO Unibank and the Bank of the Philippine Islands (BPI).

Further, if the over-allotment option is maximized, total proceeds from the sale of option shares are projected to reach P5.78 billion.

DMPL plans to redeem preferential shares and pay for certain facilities with what will be generated from the over-allotment option.

DMPI said it wants to be listed and traded on the main board of the Philippine Stock Exchange under the trading symbol DMPI.

DMPI envisioned to conduct an IPO in 2018, but its executives deferred the plan to wait for the market to stabilize.

The Philippine arm of DMPL is considered as one of the major players in the country’s food industry as its portfolio expands from canned beverages, tropical fruits, sauces and condiments. Del Monte products also lead the market in the sale of packaged pineapple, tomato sauce and packaged mixed fruits.

Meanwhile, AMAL said it would sell, at least 130 million shares at an price of P2 per share.

AMAL expects to generate up to P260 million from the sale of shares.

Net proceeds from the offer are expected to reach at least P245 million after the deduction of fees and expenses. AMAL plans to deploy the earnings from the sale of shares to the establishment of a subsidiary in Singapore and Indonesia.

It also looks to inject additional investments in its operations in the Philippines, as well as its affiliates in Vietnam and Malaysia, and put up a subsidiary engaged in lending here.

AMAL proposes that the offering be listed and traded on the small, medium and emerging board of the Philippine Stock Exchange under the trading symbol AMAL.

Once the offering is completed, a total of 520 million shares will be issued, and they represent at least a fourth of the issued and outstanding capital stock of AMAL.

The firm headquartered in Bonifacio Global City in Taguig renders financial services on merger and acquisitions both here and in Asia. At present, AMAL manages a branch in Cebu, an affiliate in Thailand and subsidiaries in Malaysia and Vietnam.