Del Monte to sell up to $150M shares in Jan
Dual-listed Del Monte Pacific Limited (DMPL) will be raising about $100 million to $150 million in fresh funds from the local equity markets in January next year in what is set to be the country’s first dollar-denominated securities (DDS) issue.
The dollar-priced offer is part of its planned $360-million preferred share issue, proceeds of which will be used to refinance Del Monte’s $350-million bridge loan from BDO Unibank Inc.
Following the recent approval by the Philippine Stock Exchange (PSE) of the rules on dollar-denominated securities, Ed Francisco, president of BDO Capital & Investment Corp., said Del Monte is now working on its DDS sale, which will likely be offered and issued in January 2017.
“Our last deal this year is the Del Monte issue, but I don’t think we can make it this year. That is the first dollar issue in the country, maybe in January next year,” Francisco told reporters last week.
BDO Capital is the sole issue manager and underwriter of the deal, with China Bank Capital Corp., PNB Capital and Investment Corp., and RCBC Capital Corp. as joint lead underwriters.
The remainder of the planned $360-million share issue will be offered in a span of three years.
Last month, the Securities and Exchange Commission (SEC) approved the PSE rules on dollar denominated securities, allowing companies to raise dollar funds from the domestic capital markets.
Despite the current volatile markets, Francisco is confident that such share offers will be well subscribed amid strong demand from both local and foreign investors.
“The capital market is working and moving well despite the global concerns,” he said.
The investment banker said the P3.96 billion initial public offering of Shakey’s Pizza Asia Ventures Inc. (SPAVI) was already oversubscribed “multiple times” during its international roadshow.
“Demand is very strong, it’s already subscribed many times. Mostly strategic long term investors (from the roadshow),” Francisco said.
BDO Capital’s other deals — such as SM Investment Corp’s P20-B bond offer and Arthaland Corp’s P2-billion bond offer — were also oversubscribed.
Del Monte is a fruit canner listed on both the Singapore Exchange Limited and the Philippine Stock Exchange. DMPL owns the leading brand Del Monte across food and beverage categories in the Philippines, Asia, the Middle East and the US, as well as in India via joint venture firm FieldFresh Foods with one of India’s largest conglomerates, Bharti Enterprises.