Global investors swarm P55.89-b Monde offering

The P55.89-billion maiden share offering of food and beverage company Monde Nissin Corp. received strong demand, as the book-building period for international and domestic investors closed.

Monde Nissin said in a statement the offering received overwhelming interest from global institutional investors and long-only funds and strong demand from Philippines-based investors, resulting in an international and domestic book building process that was multiple times oversubscribed.

The initial public offering consists of 3.6 billion common shares with an over-allotment option for another 540 million common shares at a price of P13.50 apiece.

New international and domestic investors joined the previously announced 11 renowned, global long-term cornerstone investors that include Singapore state investment fund GIC Private Limited and Hong Kong insurer AIA Group Ltd.

“The extraordinary level of interest that we received from a broad range of international and domestic investors is a testament to the world-class company that we have built and the significant growth opportunities that lie ahead,” said Henry Soesanto, chief executive of Monde Nissin said.

The P55.89-billion IPO is the largest ever on the Philippines Stock Exchange and the largest food and beverage IPO in Southeast Asia.

Monde Nissin, the company behind Lucky Me! instant noodles in the Philippines and meat alternative Quorn in the UK, said net proceeds from the primary offering would fund capital expenditures, redeem the Arran convertible notes and repay loans to commercial banks.

“Our Quorn and Asia-Pacific branded food and beverage businesses are a powerful combination to advance our mission of food safety and food security. Quorn is a leading player in the fast-growing global meat alternatives segment with a loyal customer following and a defining set of healthy sustainable products. Our Asia-Pacific branded food and beverage business is widely recognized for its leadership positions across each of its core segments. We intend to stay ahead of consumer demands through innovation and investment in technology to provide healthier and more delicious food,” Seosanto said.

Monde Nissin will be listed on the main board of the PSE under the ticker symbol “MONDE” on June 1, 2021.

Post-IPO, Monde Nissin will have market capitalization of P242.5 billion and public float of 23 percent.

UBS AG Singapore Branch, Citigroup Global Markets Limited and J.P. Morgan Securities Plc are the joint global coordinators and joint bookrunners for the offering.

BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corporation are the local lead underwriters and joint bookrunners while China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. are the domestic co-lead underwriters.

The Securities and Exchange Commission earlier approved the company’s IPO on the PSE.

Aside from Lucky Me! And Quorn, other brands owned by Monde Nissin are SkyFlakes crackers, Fita crackers and Monde baked goods.