PSE approves Del Monte Philippines’ P17.5-billion IPO

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The Philippine Stock Exchange has given the greenlight for the P17.5-billion initial public offering (IPO) of Del Monte Philippines, Inc. (DMPI) on Thursday.

In a term sheet posted Thursday, May 31, the PSE said it has approved DMPI’s issuance of up to 587.44 million common shares priced at up to P29.88 each.

The company is set to have a public float of 21% and a market capitalization of up to P83.58 billion after the fund raising activity.

DMPI will set the price for the issue on June 6, with the offer period to run from June 8 to 18. The company looks to lists its shares on the main index of the PSE by June 25.

This will place DMPI ahead of fellow IPO-hopeful D.M. Wenceslao & Associates, Inc.’s offering of up to P17.89 billion. The construction firm will be offering its shares from June 18 to 22, with target listing slated for June 29.

Net proceeds raised from the issuance will be used by DMPI’s parent company, Del Monte Pacific Ltd. (DMPL), to partially prepay or repay certain loan facility or facilities of around P6.8 billion. Around P3.544 billion will be used to repay certain payables, while it will also allocate up to P6 billion to refinance or reacquire certain financial obligations of the DMPL group to reduce its leverage positions.

DMPI is an indirect subsidiary of DMPL through Del Monte Pacific Resources Ltd.’s Central American Resources, Inc. — Arra B. Francia