Del Monte lists first dollar-denominated shares on PSE


DUAL-LISTED fruit canner Del Monte Pacific Ltd.’s (DMPL) dollar-denominated securities debuted on the Philippine Stock Exchange (PSE) on Friday after an oversubscribed follow-on offering that raised $200 million for the company.

“After much anticipation from the market, DMPL’s preference shares were finally made available to the public on March 22, and performed quite well during its limited offering period at 33.3 percent oversubscription,” DMPL said in a statement.

“The company was unfazed by the need for new rules, new trading platform and backend infrastructure of brokerage firms and the learning curve that stakeholders need to go through to accept this new instrument,” it added.

DMPL said they were able to sell a total of $200 million during the limited offering period that started on March 22 to 28, at a price of $10 per share.

The shares traded and closed unchanged at $10 on Friday.

DMPL earlier said it intended to raise $250 million in fresh funds from a follow-on offering of 15 million shares priced at $10 each, with an oversubscription option of another 10 million shares. Only 5 million shares, however, were oversubscribed on the securities’ first day of trading.

The dollar-denominated share sale is the initial tranche of the company’s three-year equities program worth $360 million under shelf registration with the Securities and Exchange Commission (SEC), DMPL said.

“There could have been more but we don’t have the time, we simply don’t have the time and it’s a new product—a lot of inquiries, a lot of interests—the time is too short,” DMPL Treasury head Augie Garcia told a news briefing.

The Series A-1 Preference Shares were sold and underwritten by joint lead underwriters BDO Capital and Investments Corp., ChinaBank Capital Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. BDO Capital acted as the sole issue manager.

DMPL’s series A-1 Preference Shares are traded on the PSE under the symbol DMPA1. It will be sold through only eight out of roughly 130 active brokerage firms.

Del Monte is the first company approved by local regulators to sell dollar-denominated securities. In December 2016, PSE adopted a system which allows listed firms to issue new sets of securities, whether common or preference shares, to be traded in US dollars.


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