IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Del Monte Philippines / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/del-monte-philippines-inc" target="_blank" data-smartkarma-citation="entities:26988:1" rel="noopener">Del Monte Philippines (1575316D PM)</a>/DMPI is a leading producer, distributor and marketer of premium quality, healthy food and beverage products. It is a market leader in the packaged pineapple and mixed fruit, ready-to-drink juices (excluding stand-up-pouches), tomato sauce and spaghetti sauce categories in the Philippines. DMPI has the rights to the Del Monte trademark for the Philippines for processed products and also sells products under the brands of S&amp;W, Contadina and Today’s. The parent company is <a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd-5951cd46-129c-41bb-8eb2-58654da08425" target="_blank" data-smartkarma-citation="entities:22651:1" rel="noopener">Del Monte Pacific (DELM PM)</a> which holds 87.0% of outstanding shares.DMPI is pre-marketing for an IPO to raise up to PHP44 billion ($0.9 billion) at the maximum offer price of PHP54.80, according to press reports. The base offer of 699.3 million shares is entirely a secondary offering by the selling shareholders, <a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> and Singapore-based SEA Diner Holdings. <div class="content-highlight">DMPI is a play on the healthy packaged and convenient packaged food and beverage categories that benefit from long-term secular tailwinds in the Philippines. DMPI’s financial track record shows it has been able to leverage its market-leading position to combine solid top-line growth with improving margins and cash generation. The growth strategy sensibly revolves around leveraging the strong brand to enter adjacent categories, the expansion of domestic distribution in underpenetrated regions and increasing share in North Asia, particularly China (premium fresh pineapples). Overall, we believe that DMPI’s fundamentals are attractive.</div>

Del Monte Philippines (1575316D PM)/DMPI is a leading producer, distributor and marketer of premium quality, healthy food and beverage products. It is a market leader in the packaged pineapple and mixed fruit, ready-to-drink juices (excluding stand-up-pouches), tomato sauce and spaghetti sauce categories in the Philippines. DMPI has the rights to the Del Monte trademark for the Philippines for processed products and also sells products under the brands of S&amp;W, Contadina and Today’s. The parent company is Del Monte Pacific (DELM PM) which holds 87.0% of outstanding shares.DMPI is pre-marketing for an IPO to raise up to PHP44 billion ($0.9 billion) at the maximum offer price of PHP54.80, according to press reports. The base offer of 699.3 million shares is entirely a secondary offering by the selling shareholders, Del Monte Pacific (DELM SP) and Singapore-based SEA Diner Holdings. DMPI is a play on the healthy packaged and convenient packaged food and beverage categories that benefit from long-term secular tailwinds in the Philippines. DMPI’s financial track record shows it has been able to leverage its market-leading position to combine solid top-line growth with improving margins and cash generation. The growth strategy sensibly revolves around leveraging the strong brand to enter adjacent categories, the expansion of domestic distribution in underpenetrated regions and increasing share in North Asia, particularly China (premium fresh pineapples). Overall, we believe that DMPI’s fundamentals are attractive.

Del Monte Philippines IPO Initiation: Tempting Fruit

APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Event-Driven

<a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> (DMPL) owns 87% of <a href="https://www.smartkarma.com/entities/del-monte-philippines-inc" target="_blank" data-smartkarma-citation="entities:26988:1" rel="noopener">Del Monte Philippines (1575316D PM)</a> (DMPI) which is looking to IPO this year. DMPL's Consumer Foods division, Del Monte Foods (DMFL) hasn’t been doing well since DMPL acquired it in 2014. The IPO of DMPI will help to deleverage DMPL which could lead to a much needed catalyst for further re-rating. Despite DMPL’s recent share price rally, there is still potentially still room for further upside subject to DMPI’s final valuation.We looked at DMPI’s IPO in:<ul><li dir="ltr" aria-level="1"><a href="https://www.smartkarma.com/insights/del-monte-philippines-pre-ipo-dominant-market-leader-but-there-are-issues-to-be-clarified" target="_blank" data-smartkarma-citation="insights:52422" rel="noopener">Del Monte Philippines Pre-IPO - Dominant Market Leader But There Are Issues to Be Clarified</a></li></ul>

Del Monte Pacific (DELM SP) (DMPL) owns 87% of Del Monte Philippines (1575316D PM) (DMPI) which is looking to IPO this year. DMPL's Consumer Foods division, Del Monte Foods (DMFL) hasn’t been doing well since DMPL acquired it in 2014. The IPO of DMPI will help to deleverage DMPL which could lead to a much needed catalyst for further re-rating. Despite DMPL’s recent share price rally, there is still potentially still room for further upside subject to DMPI’s final valuation.We looked at DMPI’s IPO in:Del Monte Philippines Pre-IPO - Dominant Market Leader But There Are Issues to Be Clarified

Del Monte Pacific HoldCo Trade - Potential 50% Upside from DMPI IPO

<a href="https://www.smartkarma.com/entities/del-monte-philippines-inc" target="_blank" data-smartkarma-citation="entities:26988:1" rel="noopener">Del Monte Philippines (1575316D PM)</a>  is looking to raise about US$791m in its upcoming Philippines IPO.Del Monte Philippines, Inc (DMPI) is a leading food and beverage producer in the Philippines and internationally. DMP has been in operation in the Philippines for 95 years. It produces, markets, and distributes its products worldwide under brands like Del Monte, S&amp;W, Contadina and it has a dominant market position across a range of products. In this note, we look at the company's products and its respective market share, financial performance, and point out issues that the company needs to address.

Del Monte Philippines (1575316D PM)  is looking to raise about US$791m in its upcoming Philippines IPO.Del Monte Philippines, Inc (DMPI) is a leading food and beverage producer in the Philippines and internationally. DMP has been in operation in the Philippines for 95 years. It produces, markets, and distributes its products worldwide under brands like Del Monte, S&amp;W, Contadina and it has a dominant market position across a range of products. In this note, we look at the company's products and its respective market share, financial performance, and point out issues that the company needs to address.

Del Monte Philippines Pre-IPO - Dominant Market Leader But There Are Issues to Be Clarified

Insight Provider, CrossASEAN Research

Nicolas Van Broekhoven

Insight Provider

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> has been on a tear since we highlighted the opportunity in our insight <a href="https://www.smartkarma.com/insights/del-monte-pacific-delm-sp-cook-from-home-and-multiple-subsidiary-ipo-s-to-unlock-large-upside" target="_blank" data-smartkarma-citation="insights:48689" rel="noopener">Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?</a> early March. The stock was trading at 0.24 SGD in early March and just hit 0.32 SGD this morning (+33%).We see two reasons for this outperformance:<ul>
<li>Competitor Monde Nissin will list on PSE shortly after regulatory approval was granted yesterday. Monde Nissin will be the largest ever listing in the Philippines setting up a good benchmark for Del Monte Philippines. </li>
<li>Moody's upgraded Del Monte Foods debt to B3 opening up debt refinancing going forward.</li>
</ul>Del Monte Pacific remains a balance sheet story where the Enterprise Value could be reshuffled in favor of equity holders as debt is lowered and interest costs diminish. Should either the Philippines unit or USA unit succeed in an IPO we think Del Monte Pacific doubles from here. See our previous insight for more details.Next catalyst? We expect broker coverage on Del Monte as investment banks vying for the IPO's of the Philippines and US units will get into action.

Del Monte Pacific (DELM SP) has been on a tear since we highlighted the opportunity in our insight Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside? early March. The stock was trading at 0.24 SGD in early March and just hit 0.32 SGD this morning (+33%).We see two reasons for this outperformance:
Competitor Monde Nissin will list on PSE shortly after regulatory approval was granted yesterday. Monde Nissin will be the largest ever listing in the Philippines setting up a good benchmark for Del Monte Philippines. 
Moody's upgraded Del Monte Foods debt to B3 opening up debt refinancing going forward.
Del Monte Pacific remains a balance sheet story where the Enterprise Value could be reshuffled in favor of equity holders as debt is lowered and interest costs diminish. Should either the Philippines unit or USA unit succeed in an IPO we think Del Monte Pacific doubles from here. See our previous insight for more details.Next catalyst? We expect broker coverage on Del Monte as investment banks vying for the IPO's of the Philippines and US units will get into action. 

Del Monte Pacific: Monde Nissin IPO Approved; Moody's Upgraded Debt Profile = All Positive

<a href="https://www.smartkarma.com/entities/del-monte-pacific-ltd" target="_blank" data-smartkarma-citation="entities:5051:1" rel="noopener">Del Monte Pacific (DELM SP)</a> is a part of the once sprawling worldwide Del Monte food empire. Over the past couple of decades, that empire was subsequently fragmented into several geographical blocks, creating confusion and investors have lost the forest from the trees.Change is in the air and multiple IPO's could unlock substantial value over the coming 12-18 months. Del Monte's core business has benefited from CFH (Cook-From-Home) as lockdowns and home-office arrangements have people dine-in rather than dine-out. DELM is also a food-inflation play as it will be easier for Del Monte to pass on price increases to their customers in a rising price environment.Below we will explain in detail why DELM has the potential to be radically transformed and how a multi-bagger return could be on the table. DELM currently has no analyst coverage. Just as we saw with <a href="https://www.smartkarma.com/entities/straits-trading-co-ltd" target="_blank" data-smartkarma-citation="entities:15745:1" rel="noopener">Straits Trading (STRTR SP)</a> it only takes one broker (who is interested in IPO fees) to highlight the opportunity to investors to put some spice under DELM's valuation. Another analogy would be <a href="https://www.smartkarma.com/entities/wilmar-international-ltd" target="_blank" data-smartkarma-citation="entities:172:1" rel="noopener">Wilmar International (WIL SP)</a> and the listing of its Chinese subsidiary <a href="https://www.smartkarma.com/entities/yihai-kerry-arawana-holdin-a" target="_blank" data-smartkarma-citation="entities:29184:1" rel="noopener">Yihai Kerry Arawana Holdin-A (YKIVCZ CH)</a>.Risks to the story are a reversal in CFH, continued large debt burden, and execution issues.

Del Monte Pacific (DELM SP) is a part of the once sprawling worldwide Del Monte food empire. Over the past couple of decades, that empire was subsequently fragmented into several geographical blocks, creating confusion and investors have lost the forest from the trees.Change is in the air and multiple IPO's could unlock substantial value over the coming 12-18 months. Del Monte's core business has benefited from CFH (Cook-From-Home) as lockdowns and home-office arrangements have people dine-in rather than dine-out. DELM is also a food-inflation play as it will be easier for Del Monte to pass on price increases to their customers in a rising price environment.Below we will explain in detail why DELM has the potential to be radically transformed and how a multi-bagger return could be on the table. DELM currently has no analyst coverage. Just as we saw with Straits Trading (STRTR SP) it only takes one broker (who is interested in IPO fees) to highlight the opportunity to investors to put some spice under DELM's valuation. Another analogy would be Wilmar International (WIL SP) and the listing of its Chinese subsidiary Yihai Kerry Arawana Holdin-A (YKIVCZ CH).Risks to the story are a reversal in CFH, continued large debt burden, and execution issues.

Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?

United States

Fresh Del Monte Produce Inc. produces and markets bananas, pineapples, deciduous fruit, melons, and other fresh produce and non-produce items.  The Company grows, distributes, transports, and markets its products worldwide.

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Fresh Del Monte Produce (FDP US)

Del Monte Philippines IPO Initiation: Tempting Fruit

DMPI is pre-marketing for an IPO to raise up to PHP44 bn ($0.9 bn) at the maximum offer price of PHP54.80, according to press reports. Overall, we...

Arun George

Del Monte Pacific HoldCo Trade - Potential 50% Upside from DMPI IPO

Del Monte Pacific (DELM SP) (DMPL) owns 87% of Del Monte Philippines (1575316D PM) (DMPI) which is looking to IPO this year.

Zhen Zhou, Toh

Del Monte Philippines Pre-IPO - Dominant Market Leader But There Are Issues to Be Clarified

Del Monte Philippines (1575316D PM) is looking to raise about US$791m in its upcoming Philippines IPO. DMPI is a leading food and beverage...

Zhen Zhou, Toh

Del Monte Pacific: Monde Nissin IPO Approved; Moody's Upgraded Debt Profile = All Positive

Del Monte Pacific has appreciated by 33% over the past 45 days as competitor Monde Nissin is listing on the PSE and Moody's upgraded Del Monte's...

Nicolas Van Broekhoven

Del Monte Pacific (DELM SP): Cook-From-Home and Multiple Subsidiary IPO's to Unlock Large Upside?

Del Monte Pacific, dual-listed in Singapore and the Philippines, is valued at a mere 350M USD but potentially sits on a treasure trove of...

Nicolas Van Broekhoven

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