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Del Monte Philippines US$333 million IPO gets approval from SEC

Del Monte
Del Monte Philippines US$333 million IPO gets approval from SEC

Del Monte

25/5/2018 – Del Monte Philippines Inc (DMPI) has yesterday received approval from Securities and Exchange Commision (SEC) on their plan to raise up to P17.55 billion (about US$333 million) via its initial public offering (IPO).

According to a statement from SEC, it has approved Del Monte’s IPO which involves an offering of 587.437 million secondary shares, representing 21 percent of the firm’s outstanding capital stock, that can be purchased at P29.88 ($0.55) per share.

Investment house BDO Capital & Investment Corp. has been appointed as the issue manager, sole global coordinator, and sole bookrunner for the offering.

The offer shares will be sold by selling shareholder Central American Resources Incorporated (CARI), a wholly-owned subsidiary of Del Monte Pacific Resources Ltd, which in turn is wholly owned by DMPL.

“The company will not directly receive any net proceeds from the offer. No amount of the proceeds will be used to reimburse any officer, director, employee for services rendered, assets previously transferred, money loaned or advanced, and otherwise,” said the country’s corporate regulator.

The group aims to raise funds from the proposed public offering to partially prepay or repay certain loan facilities.

“The balance of proceeds, if any, will be used for general corporate purposes. The prepayment of such loan will allow the DMPL group to deleverage and strengthen its balance sheet,” said a spokesperson from DMPL.

This would mark the second IPO in the Philippines this year following the approval by the SEC on the application of construction and property developer DM Wenceslao earlier this month.

Del Monte Philippines Inc is the wholly-owned Philippine subsidiary of global branded food and beverage firm Del Monte Pacific Limited. With this IPO, the company will be dually listed on the Philippines Stock Exchange and Singapore Exchange Ltd.

The company runs the production and sale of food and beverage products in the Philippines under the Del Monte brand while exports are managed under the S&W brand. Their range of products include juice drinks, packaged pineapple, mixed fruits, various tomato, spaghetti sauces, and culinary mixes.

On the other hand, DMPI also operates one of the world’s largest fully-integrated pineapple operations and has been growing and processing pineapple for over 90 years, supporting its market leadership and high-quality products.

OCB to list shares on Ho Chi Minh City Stock Exchange, expects US$1 billion market value post-listing

OCB to list shares on Ho Chi Minh City Stock Exchange, expects US$1 billion market value post-listing


21/5/2018 – Vietnam Orient Commercial Joint Stock Bank (OCB) is expecting an increase in market capitalization to US$1 billion after a planned listing on the country’s benchmark bourse during the second half of the year.

According to OCB’s Chairman Trinh Van Tuan, the 22-year old bank plans to list 750 million shares on the Ho Chi Minh City Stock Exchange (HoSE) during the late third quarter or early fourth quarter.

Besides, the bank also intends to sell 800 billion dong (about US$35 million) worth of shares to investors via private placement in the third quarter after issuing 14.2 percent of dividend shares and 20.5 percent of shares to existing shareholders.

With this, OCB expects to boost its registered capital by 50 percent to 7.5 trillion dong (about US$328 million) through the share issuances before its planned listing.

The lender also plans to offer as much as 25 percent of its shares to foreign investors before the listing, The bank is planning roadshows in Singapore, Hong Kong, and London in the next two months. Meanwhile, the bank has already garnered interest from multiple investors from Asia, Australia, and Europe,

“We are one of a few high-growth and good private banks in Vietnam that have more than a 25 percent stake available to foreign investors,” Tuan said, explaining that the country’s strong economy and stock market is providing the bank an opportune time to seek investors.

This year, the bank targets to expand its total assets by 37 percent to 116 trillion dong (about US$5.075 billion) and restricting its non-performing loans to below 2 percent. Moving forward, OCB also aims to reach an annual profit growth of 50 to 60 percent starting in 2019.

According to Tuan, the bank sees 2018 pretax profit doubling to 2 trillion dong, who with family holds nearly 18 percent of the lender’s shares.

OCB’s listing would make it the fourth Vietnamese bank to list on the nation’s major exchange this year, following HDBank, Tien Phong Bank and Techcombank, which plans to trade shares on the Ho Chi Minh City Stock Exchange next month.