Del Monte Pacific defers IPO of Philippine unit

Del Monte Pacific Ltd. is deferring the plan to stage an initial public offering for wholly-owned subsidiary, Del Monte Philippines Inc., citing volatile 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 Del Monte Philippines to defer the offering until such time when market conditions improve,” Del Monte Pacific said in a regulatory filing submitted by chief legal counsel and chief compliance officer Antonio Ungson on Thursday.

Del Monte Pacific has postponed the IPO of its local unit due to weakness in the markets and speculations of lukewarm demand, said Luis Limlingan, managing director at Regina Capital Development Corp. 

“The IPO was a secondary offering made by its subsidiary and has a 70 percent local allocation, with the remaining intended for foreign investors. With market conditions not at the highest this year, perhaps it is a strategic move when more investors are looking to return and participate in the local market,” Limlingan said.

The company said in February it would launch an initial public offering for Del Monte Philippines covering up to 21 percent of its common shares.

Del Monte Pacific had secured the necessary regulatory approvals from the Securities Exchange Commission and the Philippine Stock Exchange, as well as its shareholders.
 
“The company will make further announcements in relation to the offering as appropriate,” it said. —VDS, GMA News