Del Monte Philippines Inc. is pushing through with its plan to raise P16.7 billion through an initial public offering scheduled in April despite the current volatile stock markets, the underwriter handling the transaction said.
BDO Capital and Investments Corp. president Eduardo Francisco said in a recent interview DMPI’s maiden offering at the Philippine stock market would push through as scheduled. He said DMPI would adjust some of the terms of the offering given the current market conditions.
“That will push through. If ever, we will just probably adjust the price. But DMPI has underlying assets,” Francisco said.
DMPI last month filed with the Securities and Exchange Commission an application to offer up to 559.464 million shares, presenting 20 percent of the company’s total issued shares, at a price of P29.88 apiece.
The company plans to use proceeds from the fund raising activity to partially prepay or repay certain loans which will allow it to deleverage and strengthen its balance sheet.
The company has tapped BDO Capital & Investment Corp. as issue manager, sole global coordinator and book runner for the offering.
It set the offering period tentatively on April 16 to 20 and the listing on April 27. DMPI will be the first company to conduct an IPO this year.
DMPI is the local unit of Del Monte Pacific Ltd. Approximately two-thirds of DMPL’s sales come from the Philippines under the Del Monte brand, and one-third from the export markets under the S&W brand and through a private label.
A market leader in canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup, Del Monte is a household name in the Philippines. It operates one of the world’s largest fully-integrated pineapple operations, and has been expanding and processing pineapple for over 90 years, supporting its market leadership and high quality products.
Its major suppliers include tinplate suppliers from Japan, and pineapple fruit from its own-operated plantation in Bukidnon province.
DMPI owns a 23,000-hectare plantation in Mindanao, the world’s largest fully integrated pineapple operation, and a 700,000-ton capacity processing facility.