Del Monte Philippines $874 Million IPO Gets the Nod From Securities Regulator

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

The IPO will to increase a whopping 44 billion pesos ($874 million) from the initial stock sale, including the over-allotment option. That makes it the country’s second largest IPO this year, after instant noodle and cookie maker Monde Nissin that raised 55.9 billion pesos as of its market debut in June.

The company confirmed that Forbes that the share sale will begin August 9-13 and the listing on the Philippine Stock Exchange will take place on August 23.

Major shareholders Del Monte Pacific and SEA Diner Holdings plan to sell 699.3 million shares of Del Monte Philippines at a maximum price of 54.80 pesos, according to a filing archived by the company to the Securities and Exchange Commission in the Philippines. The IPO comes with an over-allotment option of 104.9 million shares.

The Philippines is see an IPO boom this year, with the country’s stock market raising more than 122 billion pesos in capital through IPOs and the sale of existing stock in the first half of this year, surpassing the 104 billion pesos reported for all of 2020.

Among the companies preparing to go public this year are the real estate investment trusts backed by office and commercial assets built by major developers, including Megaworld, Filinvest Land and Robinsons Land.

The 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 since improved, with the Philippine benchmark index rising 8% over the past 12 months.

The company that reported up 33% in net income to 4.6 billion pesos in the year ended April 30, is a market leader in packaged pineapple and mixed fruits, ready-to-drink juices, tomato sauce and spaghetti sauce.

Del Monte Philippines is controlled by the Campos siblings through Del Monte Pacific, whose shares are traded in Singapore and the Philippines. The siblingsJocelyn, Joselito and Jeffrey debuted in the Forbes The Philippines Rich List in 2019 after their mother Beatrice passed away. The family was ranked No. 23 in the 2020 Philippine Rich List with a net worth of $600 million.

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