Food giant Monde Nissin eyes Philippines' biggest IPO

MANILA, Philippines — Food manufacturer Monde Nissin Corp. is eyeing to raise up to P72 billion in a long-anticipated initial public offering poised to become the largest in history.

The company behind the hugely popular Lucky Me! instant noodles will initially sell 3.6 billion common shares at an offer price of P17.50 each, filing documents released by the Securities and Exchange Commission (SEC) on Thursday showed.

If that plan is realized, Nissin would raise approximately P60.4 billion, net expenses and other charges. Yet the company still has the option to sell 540 million more shares if demand is strong, allowing a blockbuster sale of up to P72 billion.

The Nissin IPO, including overallotments, is so massive it beats the combined capital raised in all IPOs seen over the past 2 years.

Whichever is raised, Monde Nissin is bound to beat capital raised by Robinsons Retail Holdings Inc., which holds the title of the biggest IPO, in 2013. Monde will be second company to go public this year, following DDMP REIT Inc. which will be selling shares and listing later this month.

Last year, only three companies went public amid a tumultuous year for the local bourse.

Talks of Nissin going public had been circling early this year, but the food-maker had not confirmed it until Thursday’s filing with the regulators. SEC would have to approve the IPO, and then the Philippine Stock Exchange.

The timing of listing also comes at a time local firms had been tapping the financial markets to raise cash following lockdowns that crippled their operations and tarnished their balance sheets. However, appeared to have survived the pandemic crunch having increased profits 21.3% year-on-year to P8 billion in 2020.

Net sales, meanwhile, grew 3.8% on-year to P67.9 billion.

“At the early onset of the COVID-19 pandemic, the Group faced the difficult task of ensuring the health and welfare of its employees while ensuring food supply especially noodles pouches and crackers, which are considered staples during tough times,” the company said.

“The Group adapted quickly and both objectives were achieved without compromises,” it added.