Del Monte prices share offer at P17


AS part of its fund-raising activities, Del Monte Pacific Ltd. (DMPL) has priced a follow-on offering of 5.5 million common shares at P17 per share.

In a disclosure to the Philippine Stock Exchange (PSE), DMPL said its board of directors approved the follow on price at P17 per share, which will raise P93.5 million in fresh funds through the sale of 5.5 million primary shares.

“The offer price represents a premium of approximately 1.65 percent to the volume weighted average price for trades done on both the PSE and the Singapore Exchange Securities Trading Limited on October 14, being the full market day on which the underwriting agreement was signed,” the company said.

“It represents a discount of approximately 1.85 percent to the PSE closing price of P17.32 on October 14,” it added.

Earlier, the DMPL listed on the local bourse by way of introduction, a method requiring companies to conduct a follow on offering within 12 months of listing. The company listed on the PSE on June 10 last year, while being listed at the Singapore Exchange Securities Trading Limited.

The P79.9-million net proceeds after listing deductions and taxes will be partially used for repayment of debts from the acquisition of its US-based company Del Monte Foods Inc.

(DMFI). The DMFI acquisition was done in February to expand its presence in the US and South American market, costing DMPL $1.68 billion for the takeover.

BPI Capital Corp. was the chosen underwriter for the shares sale. The 5.5 million shares will be distributed to the investing public of the PSE (1.1 million shares), to local small investors (LSI) (550,000 shares), and the rest for the general public.

“Shares not taken up by the PSE trading participants, the LSIs and the general public, which is approximately 70 percent of the shares, shall be purchased by BPI Capital,” the company said.

DMPL has incurred a $21.9 million net loss in May to July this year due to the acquisition-related expenses of DMFI.


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