Del Monte unit defers Philippine IPO amid Covid-19 surge

The group had planned to offer up to 15 per cent of its stake in Del Monte Philippines.
The group had planned to offer up to 15 per cent of its stake in Del Monte Philippines.PHOTO: REUTERS

SINGAPORE (THE BUSINESS TIMES) - Del Monte Pacific on Wednesday (Aug 4) announced its decision to delay plans for the initial public offering (IPO) of its 87 per cent-owned subsidiary, Del Monte Philippines, on the Philippine Stock Exchange (PSE).

Citing adverse market conditions amid the recent surge of Covid-19 cases in the Philippines and the region, the group noted that the PSE has been highly volatile in recent weeks.

As such, its board believes that it is in the best interests of the group, along with its shareholders and investors, to defer the listing until conditions improve.

Del Monte said its board remains committed to listing Del Monte Philippines and "continues to believe strongly in the growth and resilience of its business".

"During this time, the company will continue discussions with potential investors and strategic partners that have expressed interest during the IPO process," added the group in its filing.

In April, Del Monte announced that Del Monte Philippines was proposing an IPO of its common shares.

The group had planned to offer up to 15 per cent of its stake in Del Monte Philippines. Sea Diner Holdings, which owns the remaining 13 per cent of the Philippine subsidiary, was prepared to offer up to 10 per cent of its stake to be floated.

Shares of Del Monte closed down 0.5 cent, or 1.3 per cent, at 39 cents on Tuesday.