Del Monte Philippines’ $ 874 million IPO gets green light from securities regulator

Del Monte Philippines, known for its pineapple-based products and sauces, said the Securities and Exchange Commission has approved its initial public offering, with a local stock exchange listing slated for next month.

The IPO will be raise up to 44 billion pesos ($ 874 million) from the first sale of shares, including the over-allotment option. This makes it the country’s second IPO this year, after instant noodle and cookie maker World Nissin who had raised 55.9 billion pesos since it debuted on the market in June.

The company confirmed Forbes that the sale of the shares will begin from August 9 to 13 and that listing on the Philippine Stock Exchange is scheduled for August 23.

Major shareholders Del Monte Pacific and SEA Diner Holdings plan to sell 699.3 million Del Monte Philippines shares at a maximum price of 54.80 pesos, record shows deposit by the company to the Philippine Securities and Exchange Commission. The IPO is accompanied by an over-allotment option of 104.9 million shares.

The Philippines are seeing a boom in IPOs this year, with the country’s stock exchange recording over 122 billion pesos in capital raised through IPOs and sale of existing shares in the first half of this year, surpassing the 104 billion pesos reported for the whole of 2020.

Among the companies gearing up to list this year are office and commercial asset-backed real estate investment trusts built by big developers such as Megaworld, Filinvest Land and Robinsons Land.

Del Monte Philippines’ IPO comes three years after the company postponed plans for its first share sale in 2018, citing unfavorable market conditions. Investor sentiment has improved since then, with the Philippine benchmark stock index climbing 8% in the past 12 months.

The company, which reported a 33% jump in net income to 4.6 billion pesos in the fiscal year ended April 30, is a market leader in packaged pineapples and mixed fruit, ready-to-drink juices, tomato sauce and spaghetti sauce.

Del Monte Philippines is controlled by the Campos brothers through Del Monte Pacific, whose shares trade in Singapore and the Philippines. Siblings Jocelyn, Joselito and Jeffrey made their debut in the Forbes Rich list of the Philippines in 2019 after the death of their mother Beatrice. The family ranked 23rd on the Philippines 2020 Rich List with a net worth of $ 600 million.

The Campos siblings derive their fortune from the country’s pharmaceutical giant Unilab, founded in 1945 by their late father Jose Campos and his business partner Mariano Tan. Jocelyn’s son Clinton runs Unilab, while Joselito runs Del Monte Pacific and Jeffrey runs the family’s real estate business.

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