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SEC ‘pre-clears’ Del Monte’s P44.07 billion IPO

July 16, 2021 - Friday 9:07 PM by MDM

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The Securities and Exchange Commission announced Friday it approved Del Monte Philippines Inc.’s planned P44.07-billion maiden share sale, but the company would still have to meet “certain remaining requirements.”

In a statement, the SEC said it considered favorably the upcoming fundraising activity, but Del Monte “will receive the corresponding order of registration and permit to sell after complying with the conditions set by the SEC.”

Under the company’s plan, Del Monte would sell 699.3 million secondary common shares to the public at P54.80 apiece. The company would sell an additional 104.9 million stocks if there’s high demand for the offer.

Del Monte is expected to raise P38.32 billion in gross proceeds from the share sale. If the overallotment option is fully exercised, the company will rake in 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.

Del Monte 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 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 Philippine Stock Exchange on August 23, based on its latest submission to the SEC.