SEC clears Monde Nissin’s P72-b initial public offering


The Securities and Exchange Commission said Tuesday it approved the P72.45-billion initial public offering of global food company Monde Nissin Corp.

Monde Nissin plans to offer up to 3.6 billion in primary shares with an over-allotment option for another 540 million in secondary shares at P17.50 apiece. Monde Nissin’s could be the country’s biggest first-time share sale based on current terms of the IPO.

Net proceeds from the sale of primary shares will be used for capital expenditures (P26.52 billion), redemption of a convertible note (P17.31 billion) and repayment of loans (P16.78 billion), documents showed.

Based on the latest registration statement filed with the SEC, Monde Nissin will hold the public offering from May 17 to 21. The shares will be listed on the main board of the Philippine Stock Exchange on May 31.

Monde Nissin will have a public float of 23 percent after the IPO.

Monde Nissin is the food manufacturer behind the brands SkyFlakes, Fita, Mama Sita’s and Dutch Mill. It operates two core businesses known as the Asia-Pacific branded food and beverage business, which consists of instant noodles, biscuits and other products and meat alternative business.

Monde Nissin operates two noodle lines at its manufacturing facility in Thailand. The group plans to commission its third noodle line in Thailand, using high-speed airflow technology in 2021.

Monde Nissin exports to over 40 countries around the world. The company acquired U.K.-based meat alternative maker Quorn Foods Ltd. for $753 million in 2015.

UBS AG Singapore Branch, Citigroup Global Markets Limited and J.P. Morgan Securities PLC will serve as joint global coordinators for the public offering, while Credit Suisse (Singapore) Limited will serve as joint international bookrunner, alongside international co-bookrunners Jefferies Singapore Limited and Macquarie Capital Securities (Singapore) Pte. Limited.

BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. will be the local lead underwriters.

China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. were also engaged as domestic co-lead underwriters.

Monde Nissin said it was banking on the growing consumer preference for sustainable and healthier lifestyles as it ramped up capital spending for the meat alternative business.

The company said that from P2.37 billion of capital spending from 2018 to 2020, it would double investments for meat alternative business to P6.28 billion for the period 2021 to 2022.

This is nearly one-fourth of the group’s P26.5-billion programmed capital spending for the next three years, which will be funded by the company’s planned initial public offering.

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