Del Monte Pacific Ltd

COMPANY INFO

Del Monte Pacific Ltd

COMPANY INFO

* Offer consists of secondary share sales

* Proceeds to pay debts of parent Del Monte Pacific

* IPO is set to be launched in the third quarter-source

* Philippines gears up for blockbuster year of IPOs (Recasts with details on IPO, quotes)

MANILA, April 28 (Reuters) - Del Monte Philippines Inc filed for an IPO that could raise up to 44.1 billion pesos ($910 million), marking potentially the second-largest share offering in a market that is gearing up for a blockbuster year for listings.

Del Monte&rsquo s shareholders Del Monte Pacific and SEA Diner, are seeking to sell up to 804.23 million shares, including an over-allotment option of 15%, it said in a registration statement filed with the corporate regulator on Wednesday.

Del Monte, the maker of canned fruit-to-tomato sauce has been operating in the Philippines for 95 years, and is also the company behind the S& W brand operating in 30 countries.

Del Monte, the largest fresh pineapple exporter to China, set a maximum offer price of 54.80 pesos apiece.

The Philippines, once a regional laggard in share fundraising, is set to emerge as the top spot for IPOs in Southeast Asia in a recovering economy.

Local IPOs are typically priced way below the maximum price.

At the filing price, it would be the second-largest local IPO after instant noodles and biscuits manufacturer Monde Nissin&rsquo s share sale that could raise up to $1.5 billion in May and is due to list in June.

In 2018, Del Monte shelved a plan to raise up to 13.5 billion pesos due to poor market conditions.

&ldquo The business has been reorganised to allow Del Monte to sell premium fresh pineapples directly to the fast growing China market,&rdquo said one source familiar with the deal, adding that the IPO was likely to be launched in the third quarter.

Monde Nissin is set to launch an IPO worth up to 72.45 billion pesos, putting this on track to be the country&rsquo s largest-ever listing.

Proceeds from Del Monte&rsquo s offering will be used by its parent firm, Del Monte Pacific Limited , to repay some loans.

Credit Suisse and Morgan Stanley are the joint global coordinators on Del Monte&rsquo s IPO, while DBS and CLSA are the joint international bookrunners. BDO Capital and BPI Capital are the joint local lead underwriters and bookrunners. ($1 = 48.4350 Philippine pesos) (Reporting by Neil Jerome Morales and Anshuman Daga Editing by Martin Petty and Ed Davies)

DEL Monte Pacific announced on Wednesday that its Philippine subsidiary, Del Monte Philippines, has submitted a registration statement to the Philippine Securities and Exchange Commission to propose an initial public offering (IPO) of its common shares.

 

The food-and-beverage company currently owns 87 per cent of Del Monte Philippines, while the remaining 13 per cent is owned by Sea Diner Holdings.

 

To meet the minimum public float requirement of 20 per cent, Del Monte Pacific, through its subsidiary Central American Resources, plans to offer up to 15 per cent of its stake in Del Monte Philippines for the IPO. It also intends to retain a majority stake in Del Monte Philippines and remain " significantly invested" in the subsidiary' s long-term success.

 

Meanwhile, Sea Diner, which also plans to retain a holding post-IPO, is prepared to offer up to 10 per cent of its stake to be floated.

 

Del Monte Pacific added that it expects an over-allotment option of up to 15 per cent of the total offer shares.

 

Proceeds from the IPO will be used to reduce gearing and retire some of its preference shares, said Del Monte Pacific.

 

Del Monte Pacific had requested a trading halt as at 2.08 pm before posting the IPO announcement on the Singapore bourse. The halt was lifted less than half an hour later. The counter then reached an intra-day high of 35.5 cents at 3.06pm, up 1.5 cents or 4.4 per cent from its previous close, and then closed flat at 34 cents on Wednesday.