Del Monte Philippines’ IPO secures pre-clearance from SEC

Packaged food and beverages firm Del Monte Philippines Inc. (DMPI) has secured the green light from the Securities and Exchange Commission (SEC) for its plan to raise as much as P44.07 billion through an initial public offering (IPO).

In a statement on Friday, the SEC announced it has considered “favorably” the IPO of DMPI, “subject to the company’s compliance with certain remaining requirements.”

“In its July 15 meeting, the Commission En Banc resolved to render effective the registration statement of DMPI covering 2,797,320,004 common shares to be listed and traded on the Main Board of the Philippine Stock Exchange (PSE)…,” the corporate regulator said.

“Among others, DMPI will still have to submit the final prospectus for the IPO, which should provide more clarity on some information about the company and its offer,” it said.

The SEC noted that the company will receive the corresponding order of registration and permit to sell after complying with the conditions set by the SEC.

DMPI’s registration statement covers 699,330,000 secondary common shares for public offering priced up to P54.80 per share, plus up to 104,899,500 secondary common shares for the overallotment option.

Gross proceeds from the IPO could amount to P38.32 billion at the maximum offer price.

Assuming that the overallotment option is fully exercised, the offer can raise an additional P5.75 billion.

The company’s parent, Del Monte Pacific Limited, will eventually receive and use a part of the net proceeds for the repayment of loan facilities, redemption of certain preferred shares, and general corporate purposes.

DMPI is a food manufacturer operating four main product segments, namely convenience cooking and dessert, healthy beverages and snacks, premium fresh fruit, and packaged fruit and beverages- export. Its Del Monte brand offers a line of ketchup, tomato sauce and paste, pasta, spaghetti sauce, and packaged pineapple products, among others.

The company will conduct the IPO from August 9 to 13 and debut on the PSE on August 23, based on its latest submission to the SEC.

Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Limited will serve as joint global coordinators and bookrunners for the offer, while CLSA Limited, DBS Bank Ltd. and Jefferies Singapore Limited will act as joint international bookrunners.

The company engaged BDO Capital & Investment Corporation and BPI Capital Corporation as joint local lead underwriters and bookrunners. First Metro Investment Corporation has also been tapped as local co-lead underwriter.—AOL, GMA News