Food manufacturer Monde Nissin Corp. plans to raise up to P72.45 billion in what could be the country’s largest initial public offering yet.
Monde Nissin, the company founded by businesswoman Betty Ang more than three decades ago which produces Lucky Me! Noodles and owns foreign brands such as Quorn, Nudie and Black Swan, plans to offer 3.6 million common shares with an over-allotment option for another 540 million at a price of P17.50 apiece.
The company has annual sales of over P67 billion in the Philippines and foreign markets.
Net proceeds from the offering will be used to finance the company’s capital expenditures program, including capacity expansion and development of new products.
The company also plans to use a portion of the net proceeds to repay loans and redeem convertible notes issued to Arran Investment Pte. Ltd.
Monde Nissin tapped UBS AG, Citi, Credit Suisse and JP Morgan as joint global coordinators and BDO Capital, BPI Capital Corp. and First Metro Investments Corp. as local underwriters for the offering.
After the IPO, Monde Nissin will have a public float of 23 percent.
Monde Nissin manufactures branded food including instant noodles, biscuits, baked foods and beverage. It is also into meat alternatives business. Monde Nissin operates two noodle lines at its manufacturing facility in Thailand.
The group intends to commission a third noodle line in Thailand, using high-speed airflow technology.
Monde Nissin is one of the Philippine companies with global presence. Its foreign-branded products reach more than 30 countries.
The company acquired British meat substitute manufacturer Quorn for 550 million pounds in 2015.
Monde Nissin said it expects growth in demand for both consumer staples and higher-value products. Lucky Me!, its instant noodle brand, is one of the most iconic food brands in the Philippines.
Monde Nissin said it posted a compounded annual growth of 6.2 percent between 2018 and 2020. Net sales increased from P63,367 billion in 2018 to P65,451 billion in 2019 and P67.946 billion in 2020.
It said the average growth of net sales in the key markets such as the Philippines, the United Kingdom and Thailand reached 12.4 percent in the three-year period.
Monde Nissin will become the second company to file for an IPO this year, after Central Azucarera de San Antonio Inc. of the Chan family filed for an IPO worth P588.33 million.
Three companies joined the stock market last year, including MerryMart Consumer Corp., Converge Solutions Inc. and Ayala Land REIT.
Companies raised around P104 billion form the stock market in 2020, including P44.3 billion from IPOs, P41.2 billion from follow-on offerings, P5.6 billion from private placements and P12.8 billion from stock rights offering.