Del Monte PH delays IPO amid market volatility due to COVID-19 surge

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Metro Manila (CNN Philippines, August 4) — Del Monte Philippines Inc. has postponed its maiden offering amid market volatility due to rising COVID-19 cases, its parent firm confirmed Wednesday.

“Amidst a surge of COVID-19 cases in the Philippines and in the region, the PSE has been highly volatile in recent weeks, and 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,” Del Monte Pacific Limited said in a disclosure to the local bourse.

Local shares have been on a roller coaster ride particularly during the last week of July, tumbling to the 6,300 level amid investors’ worries over rising cases of the highly transmissible Delta variant and further to 6,200 territory after the capital region returned to stricter quarantine measures due to the variant’s threat.

The food and beverage company secured in July the nod of the Securities and Exchange Commission and Philippine Stock Exchange for its initial public offering, which aims to raise as much as ₱44 billion.

This is Del Monte Philippines’ second attempt to go public. It previously buckled up for an IPO in 2018, but didn’t push through due to then-volatile market conditions. 

“The Board remains committed to listing DMPI and continues to believe strongly in the growth and resilience of its business,” Del Monte Pacific Ltd.said, adding it will continue talks with potential investors and strategic partners interested in the offering.

Further announcements will be made as appropriate, assured DMPL.