MANILA, Philippines (Update 2, 3:35 p.m.) — There were no fireworks during the much-awaited stock market debut of food giant Monde Nissin Corp., which raised P48.6 billion during the biggest initial public offering in the country’s history.
From its offer price of P13.50 each, shares in Monde Nissin shed 0.15% to finish at P13.48 apiece on Tuesday, tracking a drop in the main index. It was the day’s most actively traded stock after a total of 238.4 million company shares — valued at P3.2 billion — switched hands.
Monde Nissin’s mammoth maiden share sale last month gave the company a valuation of P242.6 billion, catapulting it to the 30-member Philippine Stock Exchange Index (PSEi), Bloomberg News reported.
The offering was four times oversubscribed, said Lexter Azurin, senior equity analyst at AB Capital Securities in Manila. Monde Nissin said it has attracted cornerstone investors including Hong Kong insurer AIA and Singapore sovereign wealth fund GIC.
"Given the market uncertainty right now, it's actually quite positive that we're seeing demand has been quite brisk," Azurin added.
The maker of household staples such as Lucky Me! Instant Noodles and Nissin Wafers exports instant noodles, biscuits and crackers to dozens of countries. It also owns the British meat-substitute maker Quorn.
During Tuesday’s listing ceremony, Henry Soesanto, company chief executive, said its fake meat business has the potential to drive Monde Nissin’s growth in the coming years.
“As a recognized leader in the meat alternatives industry, Quorn is at the forefront of the global shift towards sustainably produced food for health- and environmentally-conscious consumers,” Soesanto said.
“Our proven ability to advance our products by leveraging innovation and investments in technology to provide healthier and more delicious food allows us to stay ahead of evolving consumer demands and strengthens our ability to expand into new markets,” he added.
As it is, the blockbuster share sale helped shape the Philippines into one of the region’s major IPO markets this year. That said, government officials gushed over the market launch of Monde Nissin — not related to Japan's Nissin Foods Group — with Finance Secretary Carlos Dominguez III believing the IPO was a show of confidence on an economy struggling to recover from pandemic fallout.
“Monde Nissin’s landmark transaction sends a clear message that our economy will soon regain its momentum and will bounce back stronger than ever,” Dominguez said in a statement.
While the first trading day for Monde Nissin was a dud, Arielle Santos, consumer stock analyst at Regina Capital, said there is still some room for the stock to rally. “Despite being priced quite high on its IPO, further price appreciation is still viable in the long term,” she said in an online exchange. — Chart by Prinz Magtulis. With reports from AFP.