From a California-based food distributor deciding to use the name of a resort hotel on the Monterey Peninsula to brand their product line in the late 19th Century, there arose a major multinational food production and distribution company: Del Monte Foods. The brand name is prominent here in the Philippines thanks to its varied products such as tomato and banana ketchups, canned pineapples, juices, spaghetti sauce and so much more. In recent years Del Monte Philippines has been trying to break into the stock exchange as a publicly traded company. But its first IPO was scrubbed back in 2018; and its second attempt this year as well, for obvious reasons.
CNN Philippines reports that Del Monte Philippines Inc. has decided not to go through with its latest foray at an initial public offering at the Philippine Stock Exchange, owing to that market’s volatile condition due to dramatic shifts in the country’s COVID-19 pandemic situation. That much was made known this Wednesday, August 4 by DMP’ parent company Del Monte Pacific Limited, which offered a disclosure announcing the Philippine subsidiary’s deferment of an IPO. A number of areas in the country are soon entering tighter community quarantine levels, including Metro Manila.
“Amidst a surge of COVID-19 cases in the Philippines and in the region, the PSE has been highly volatile in recent weeks,” stated the disclosure from Del Monte Pacific. “The Board believes that it is in the best interests of the Company, its shareholders and potential investors to defer the listing until conditions improve.” Worries of yet another few weeks under enhanced community quarantine (ECQ) affecting Filipino businesses and the economy has already caused dramatic drops in the Philippine Stock Exchange Index (PSEi) ever since Monday, August 2. It now stands at the 6,200 range following more worries from investors.
Del Monte Philippines’ renewed efforts to get an IPO going began in July, following approvals from both the PSE and the Securities and Exchange Commission (SEC). The country’s corner of the Del Monte global brand hopes the IPO could raise anywhere in the neighborhood of P44 million. Del Monte Pacific Ltd. is not too worried that those plans have fallen through again like they did in 2018, remarking that the Philippines’ Del Monte company is still resilient and good for growth. They will therefore maintain contacts with interested investors and partners and will update the PSE if there are changes.
Image from Business World Online