June 7, 2018 / 2:16 AM / 6 months ago

Del Monte Philippines postpones IPO due to stock market slide

MANILA/SINGAPORE, June 7 (Reuters) - Del Monte Philippines Inc has postponed its initial public offering (IPO) of up to 13.5 billion pesos ($258 million) as battered markets took its toll on what would have been the country’s biggest local IPO since October 2016.

The Philippines’ stock market has tumbled 10 percent this year, the worst performer in Southeast Asia, as its currency has weakened.

“International books for the IPO were covered but there’s a lot of nervousness among local investors. Everybody is in a wait-and-watch mode,” said one financial industry source, who was not authorised to speak on the matter and declined to be identified.

Parent company Del Monte Pacific Ltd said its bankers had recommended a delay but did not indicate when the offering might take place.

The IPO for the company, which sells canned pineapples and tropical mixed fruits as well as tomato sauce, was set to be priced on Wednesday. About 30 percent of the shares were to be offered to foreign investors.

Another Philippine company, property developer D.M. Wenceslao and Associates Inc, is scheduled to finalise its pricing for its IPO on Friday. It plans to raise as much as 10.87 billion pesos ($207 million). (Reporting by Enrico Dela Cruz in Manila and Anshuman Daga in Singapore; Editing by Edwina Gibbs)

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