Noodle-maker Monde Nissin receives PSE nod for $1.3b Philippine IPO

A trader takes orders on a telephone at the Philippine Stock Exchange. Source: Reuters

Food maker Monde Nissin Corp has received approval from the Philippine Stock Exchange (PSE) for its planned initial public offering (IPO) that could raise 63 billion pesos ($1.3 billion) in what will be the country’s largest-ever listing.

The PSE approval came a day after Monde Nissin, which makes the Lucky Me! instant noodles in the Philippines and meat alternative Quorn in the UK, received pre-effective approval from the Securities and Exchange Commission (SEC).

In its registration statement with the SEC, the company said it is offering 3.6 billion shares at 17.50 pesos each. The final price will be determined on May 18 while the offer period is scheduled on May 24 to 28.

“The timing of the offer, final offer price, the final number of offer shares, and allocation of the proceeds will depend on market conditions, the circumstances surrounding the offer, and will be subject to favorably securing the necessary regulatory approvals,” Monde Nissin earlier said.

The 63 billion pesos gross proceeds exclude the proceeds from the exercise of an over-allotment option of up to 15% of the shares being offered, the company disclosed.

IPO proceeds will be used for the expansion and enhancement of its production and technological capacities, including its businesses in the UK and other key markets.

The proposed Monde Nissin IPO will be bigger than the total of about $809 million raised in the Philippines market from four listings in 2020.

In Philippine filings, IPO prices are typically set far above final selling prices. Underwriting discounts and commissions, and other offering expenses payable by Monde Nissin are expected to be deducted from the gross proceeds.

Aside from Lucky Me! noodles, Monde Nissin’s brand portfolio includes SkyFlakes crackers, Fita crackers, and Monde baked goods. The listing also comes nearly six years after the company acquired alternative meat maker Quorn in the United Kingdom for $831 million in what was considered a big-ticket deal from the Philippines.

“We are excited about the prospect of becoming a global public company and believe that Monde Nissin provides a compelling investment opportunity,” the company said.

Monde Nissin’s IPO is one of seven listings lined up to launch on the PSE this year. Together, they could raise a record amount of over $3.3 billion, surpassing the total of $2.7 billion raised in the archipelago from 2016 to 2020.

National Grid Corporation of the Philippines, the local transmission operator partly owned by the State Grid Corporation of China, is also taking steps to push through its long-delayed IPO that could garner about $1 billion.

Analysts, however, said achieving the target may be a tall task as it would depend on several factors, including vaccine distribution and economic recovery.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.