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Monde Nissin files for record-breaking Philippine IPO

MONDE NISSIN CORP., the maker of Lucky Me! instant noodles, on Thursday filed for an initial public offering (IPO) to raise up to P63 billion ($1.3 billion), which could be the country’s biggest first-time share sale.

Based on its preliminary prospectus filed with the Securities and Exchange Commission (SEC), the Philippine food manufacturer is planning to sell as many as 3.6 billion shares at a maximum price of P17.50 apiece.

At $1.3 billion, the share sale would be the country’s largest IPO to date, based on data compiled by Bloomberg.

“The total proceeds to be raised by the company from the sale of the primary offer shares will be up to approximately P63 billion,” said Monde Nissin. Net proceeds are estimated at P60.4 billion.

If it fully exercises the overallotment option of as many as 540 million additional shares, Monde Nissin may raise as much as P72.5 billion from the IPO.

The food manufacturer said it would use the proceeds for its capital expenditures, loan repayment and other general corporate purposes.

Monde Nissin is known for making Lucky Me! instant noodles, SkyFlakes and Nissin biscuits, Dutch Mill yogurt drink and Mama Sita’s oyster sauce. In 2020, the company’s sales of instant noodles, biscuits, yogurt drinks and oyster sauce accounted for 68%, 30.5%, 73.2% and 56% of retail sales market share in the Philippines, based on Nielsen data.

Despite the pandemic, Monde Nissin’s net sales went up by 3.8% to P67.94 billion in 2020, from P65.45 billion in 2019. This was driven by a 5% increase in sales of noodles and beverages in the Asia-Pacific region, which offset a 1% drop in sales of meat alternatives.

This pushed the company’s net income 21.3% higher to P8.07 billion in 2020 from P6.649 billion in the prior year.

“The group believes it is well positioned to further pursue growth opportunities presented by the resilient Philippine market that features favorable demographics and consumption patterns including a young population, increased domestic household consumption (resulting from, among others, an increase in disposable income) and urbanization,” Monde Nissin said in the filing.

The company also owns Quorn Foods, which produces meat alternatives. It acquired the British ccompany behind Quorn in 2015.

“The Group believes traditional protein production is not sustainable and that it could help address food security and human health by increasing the production of Quorn to reach a wider consumer base,” Monde Nissin said.

UBS Group AG, Citigroup, Inc., Credit Suisse Group AG, and JPMorgan Chase & Co. have been tapped as joint global coordinators and joint bookrunners for the offering.

The company named BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. as local lead underwriters. — KCGV with Bloomberg

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