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
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