Campos-led Del Monte Philippines Inc. has revived its plan to go public as it resubmitted its registration papers for its initial public offering (IPO) with the Securities and Exchange Commission (SEC) on Wednesday.
The company is hoping to raise as much as P44 billion. Documents it submitted to the agency showed that Del Monte Philippines, an indirect unit of listed firm Del Monte Pacific Ltd., will sell some 699.33 million in secondary common shares and an over-allotment option of 104.89 million common shares at P54.80 per share.
The said shares will come from the holdings of Central American Resources Inc. (CARI), a company incorporated under the laws of Panama, and SEA Diner Holdings (S) Pte Ltd, a company incorporated under the laws of Singapore.
Del Monte Pacific Ltd. owns 87 percent of DMPI through CARI while SEA Diner owns the balance of 13 percent. DMPL and SEA Diner intend to offer up to 15 percent and up to 10 percent of their stake in Del Monte Philippines, respectively, for a combined offering of up to 25 percent to be floated in the proposed IPO. There is expected to be an over-allotment option of up to 15 percent of the total offer shares.
Morgan Stanley Asia (Singapore) Pte. and Credit Suisse (Singapore) Limited were picked as joint global coordinators and bookrunners along with CLSA Limited and DBS Bank Ltd. as international bookrunners. BDO Capital and Investment Corp. and BPI Capital Corp. will be its domestic underwriters and bookrunners.
“The planned IPO of Del Monte Philippines Inc. is a moment of pride for the board and the DMPI management team. It represents the realization of an ambition we have set – to provide the people of the Philippines with the opportunity to share in the continued growth and success of our Asia business,” Joselito D. Campos Jr., the company’s CEO, said.
“Our company has demonstrated resilience during the last 12 months, growing our operations and efficiency in a challenging year. This gives us the confidence to embark on the next phase of our journey. We firmly believe that this will better position us to take full advantage of our market leading position and to further accelerate our strategy across the region.”
The company shelved its plans to go public and list its shares on the Philippine Stock Exchange in 2018, citing volatile market conditions.
Del Monte Philippines said some 70 percent of the entire offer will be sold overseas and the rest to the domestic market.
Proceeds from the offer’s firm shares of about P38.32 billion, of which P12.56 billion will be used to repay certain facilities extended to its indirect parent firm Del Monte Pacific and P9.62 billion to redeem its series A-1 preferred shares.
The company has a $100-million loan from the Bank of the Philippine Islands due in May 2023, $75 million from BDO due in August 2023, $75 million from Development Bank of the Philippines due in October 2024, $5 million from DBS due in June this year and $6.1 million from RCBC due in July this year.
SEA Diner, the selling shareholder, will also have its share of the proceeds of about P15.33 billion.
“The prepayment of these loans will allow the DMPL Group to deleverage and strengthen its balance sheet. Such prepayments are allowed under the loan facility agreements without any fee or penalty,” it said.
Proceeds from the over-allotment option of P5.74 billion, will be used to redeem Del Monte Pacific’s Series A-2 preferred shares and to pay its $15.4-million from RCBC due in July.
Meanwhile, Asian Mergers and Acquisition Links Inc. also filed its registration statement with the SEC for its public offering of 130 million in primary common shares at a price of P2 apiece.
Proceeds from the offer of about P260 million will be used for the establishment of subsidiaries in Singapore and Indonesia; additional investments in the Philippines, its affiliate in Thailand and subsidiaries in Vietnam and Malaysia; and the establishment of a subsidiary engaged in the lending business in the Philippines.
The company engaged Investment and Capital Corporation of the Philippines as the underwriter and issue manager for the transaction. The company was incorporated in the Philippines in May 2015, with its principal business of providing business consultancy services.