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Friday, March 29, 2024

Monde’s IPO shows strong investor confidence in PH

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Finance Secretary Carlos Dominguez III said Tuesday that Monde Nissin’s landmark stock market transaction that attracted overwhelming demand worldwide is a testament to the high confidence of the global investor community that the country will bounce back from the economic shock of the COVID-19 pandemic. 

Dominguez said Monde Nissin, a company known for its iconic food brands, was expected to use the proceeds from its blockbuster initial public offering to expand its business activities and open up more job opportunities for Filipinos. 

Monde Nissin’s IPO of more than $1 billion is the largest public offering in the Philippine Stock Exchange and also in Southeast Asia in the food and beverage segment. 

The IPO attracted both international and domestic investors and was multiple times oversubscribed. 

“This shows that the Philippines is very capable of winning over world-class equity investors in billion-dollar issue sizes. This offering is also a testament to the high confidence of investors in the post-pandemic recovery of the Philippine economy,” Dominguez said at Monde Nissin’s listing in the PSE. 

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“Monde Nissin’s landmark transaction sends a clear message that our economy will soon regain its momentum and will bounce back stronger than ever,” he said. 

Dominguez said even amid the pandemic, this period proved to be “an exciting time for the Philippine stock market” which witnessed several other landmark offerings from the retail and telecommunications sectors and the entry of teal estate investment trust players. 

“I am sure that the Philippine stock market is poised to see more blockbuster offerings as interest in our economy continues to grow,” he said. 

These “promising developments” underscore the importance of rapidly developing the Philippines’ capital markets through reforms that would encourage financial deepening and a broad-based and inclusive financial system fit for the 21st century, Dominguez said.

The share price of Monde Nissin closed at P13.48 on Tuesday, down 0.15 percent from its maiden share offering price of P13.50.

Monde Nissin chief executive Henry Soesanto said in a news briefing following the company’s listing ceremony the alternative meat business was expected to grow exponentially over the next 10 years.

He said this scenario prompted Monde Nissin to conduct an initial public offering amid the pandemic.

“We want to have the funds ready as early as now to develop our capacity because the alternative meat business is expected to growth exponentially,” Soesanto said.

The company hopes to expand its production capacity and research and development. It will spend a total of P26.5 billion in capital expenditures over the next three years.

“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 Soesanto.

“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,” he said.

Citing data from Barclay’s Plc, Soesanto said the alternative meat business would likely grow by tenfold to more than $140 billion over the next 10 years.

While the company’s alternative meat business under the Quorn brand is primarily focused in United States and United Kingdom, Monde Nissin chief strategy officer David Nicol there would also be a lot of potential for plant-based meat products in Asia, including the Philippines.

The company, which also makes Lucky Me! instant noodles, is also poised to further increase its market share in the noodles business as it developed a new technology to reduce oil content of the noodles without affecting the taste.

“We are the first to develop this technology and probably the only in the world. We hope that consumption will increase with this new technology,” Soesanto said. With Jenniffer B. Austria

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