Monde Nissin Makes Stock Market Debut After P48.6 Billion IPO
Monde Nissin made its debut on the Philippine Stock Exchange on Tuesday (June 1) after raising P48.6 billion ($1 billion) in the country’s biggest initial public offering.
The food company—which owns well-known brands like Lucky Me!, MY San, Sky Flakes, and Mama Sita condiments, as well as the meat substitute Quorn—offered 3.6 billion common shares priced at P13.50. It is the second-largest IPO in Southeast Asia this year after the $1.8 billion IPO of Thailand’s PTT Oil and Retail Business PCL earlier this year.
The stock price rose to as much as P13.56 in the first minutes of trade before falling about 0.15 percent to P13.48.
Still, government officials led by Finance Secretary Carlos Dominguez, said the IPO was proof of the “high confidence of investors in the post-pandemic recovery of the Philippine economy." The country reported a negative GDP growth of 9.6 percent in 2020.
The IPO put Monde Nissin’s market capitalization at P242.6 billion.
“Today is a milestone moment in our history as we accelerate our mission to improve the well-being of people and the planet, and create sustainable solutions for food security,” said Henry Soesanto, CEO of Monde Nissin Corporation. “We begin life as a public company with significant momentum—our Quorn and Asia-Pacific Branded Food and Beverage businesses are performing well and are poised to capture the tremendous market opportunities that lie ahead.”
Eleven cornerstone investors, including Fidelity International, Singapore's GIC and Hong Kong insurer AIA, bought over half of the offered shares.
During a post-listing press conference, company officials said they “did not want to waste an opportunity” in deciding to go ahead with the IPO despite the anemic market sentiments caused by the effects of the pandemic. Most of the funds raised will be used to expand the company’s alternative meats business, which it says is poised to further grow in the next 10 years. Monde Nissin acquired the UK’s Quorn Foods for about $830 million in 2015.
“We need the CAPEX now,” Soesanto said.
“As a recognized leader in the meat alternatives industry, Quorn is at the forefront of the global shift towards sustainably produced food for health- and environmentally-conscious consumers,” Soesanto added. “We also benefit from our market leading positions across the core segments of our Asia-Pacific Branded Food and Beverage business. Our proven ability to advance our products by leveraging innovation and investments in technology to provide healthier and more delicious food allows us to stay ahead of evolving consumer demands and strengthens our ability to expand into new markets.”