Del Monte unit filing for IPO in the Philippines

DEL Monte Pacific announced on Wednesday that its Philippine subsidiary, Del Monte Philippines, has submitted a registration statement to the Philippine Securities and Exchange Commission to propose an initial public offering (IPO) of its common shares.

The food-and-beverage company currently owns 87 per cent of Del Monte Philippines, while the remaining 13 per cent is owned by Sea Diner Holdings.

To meet the minimum public float requirement of 20 per cent, Del Monte Pacific, through its subsidiary Central American Resources, plans to offer up to 15 per cent of its stake in Del Monte Philippines for the IPO. It also intends to retain a majority stake in Del Monte Philippines and remain "significantly invested" in the subsidiary's long-term success.

Meanwhile, Sea Diner, which also plans to retain a holding post-IPO, is prepared to offer up to 10 per cent of its stake to be floated.

Del Monte Pacific added that it expects an over-allotment option of up to 15 per cent of the total offer shares.

Proceeds from the IPO will be used to reduce gearing and retire some of its preference shares, said Del Monte Pacific.

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Del Monte Pacific had requested a trading halt as at 2.08 pm before posting the IPO announcement on the Singapore bourse. The halt was lifted less than half an hour later. The counter then reached an intra-day high of 35.5 cents at 3.06pm, up 1.5 cents or 4.4 per cent from its previous close, and then closed flat at 34 cents on Wednesday.