Monde Nissin files record P63 billion IPO

MANILA, Philippines — Filipino snack foods and noodles giant Monde Nissin Corp. is raising P63 billion from an initial public offering long awaited by investors looking to own a part of the multinational company.

In a prospectus filed with the Securities and Exchange Commission (SEC) yesterday, Monde Nissin said it is offering up to 3.6 billion common shares with an over allotment option of up to 540 million common shares at a price of as much as P17.50 per share for a total of up to P63 billion.

Proceeds from the offer will be used to fund the company’s capital expenditures, redemption of certain notes, repayment of loans and general corporate purposes.

Monde Nissin is “among the frontrunners in the food manufacturing industry in the Philippines with a portfolio of various iconic and well-recognized brands,” it said.

It is also a multinational giant with two core businesses – the Asia-Pacific Branded Food and Beverage Business (APAC BFB) and the meat alternative business, which includes the production, marketing and sales of the Quorn and Cauldron meat alternatives brands.

The APAC BFB Business comprises three product groups namely instant noodles, biscuits and other products. Flagship brands under this category are Lucky Me! for instant noodles, SkyFlakes, Fita, Nissin and M.Y. San Grahams for biscuits, Mama Sita’s for culinary aids and Dutch Mill for yogurt drinks.

Quorn Foods is the market leader in the meat alternatives market in the United Kingdom.

From 2018 to 2020, Monde Nissin’s net sales grew 3.3 percent from P63.3 billion in 2018 to P65.4 billion in 2019 and 3.8 percent from P65.4 billion in 2019 to P67.9 billion in 2020, representing a CAGR of 6.2 percent.

Monde Nissin operates in the Philippines, the United Kingdom and Thailand, with average growth of net sales at 12.4 percent during the same three-year period.

The company tapped UBS, Citi, CreditSuisse, J.P. Morgan as joint global coordinators and BDO Capital, BPI Capital Corp. and First Metro Investment Corp. as local lead underwriters.

The company has yet to provide a timetable for the IPO.

Monde Nissin was already planning to do an IPO as early as 2015 but postponed this due to market volatility and because they had to review their financials following a string of global acquisitions.

The company is owned by Betty Ang, hailed by Forbes as the 38th richest person in the Philippines in 2020 with a net worth of $185 million. The company has been among the Top 1000 companies in the Philippines since 2000.

“Monde Nissin was the first firm in the country to sell pouches of dry noodles to make instant soup, and currently boasts more than a 60 percent share in the market and more than 30 percent of the biscuit sector,” Forbes said.

The company has been on a global expansion mode in recent years.

In 2015, it acquired Menora Foods, a family-owned Australian food company, its third acquisition in Australia, having previously acquired the Black Swan and Nudie food brands.

It also acquired UK-based Quorn for $831 million in the same year.

In 2016, Monde Nissin entered into a joint venture deal with Nippon Indosari, Indonesia’s largest bread products producer to create Sarimonde Foods Corporation.

According to the company, the newly formed Sarimonde made its first major move in the packaged bread market when it recently acquired Walter Bread, a Filipino brand known for its healthy and innovative bread products. Its portfolio includes Walter Sugar-Free Bread and Walter Double Fiber Wheat Bread, both first of their kind in the market.

The company also launched a partnership with Japanese retailer Uniqlo to launch shirts for men and women that carry Monde Nissin brands such as Lucky Me!, the Philippines’ leading instant noodles brand, and Bingo Cookie Sandwich, a favorite snack among teens.