RECORD-BREAKING IPO. Monde Nissin completes its initial public offering (IPO) in the Philippine Stock Exchange (PSE) on Tuesday (June 1, 2021). Executives of Monde Nissin and PSE ring the bell to welcome the new listed firm in the stock market. (Screenshot from Monde Nissin listing ceremony)
MANILA – Philippine-based food manufacturer Monde Nissin Corp. is now a publicly listed firm after completing the largest initial public offering (IPO) in local stock market’s history.
During the listing ceremony of Monde Nissin Tuesday, Philippine Stock Exchange (PSE) president and chief executive officer Ramon Monzon welcomed the PHP48.6 billion raised by the company for its IPO.
“The confidence it showed in going public at this time will surely encourage other companies considering an IPO to do the same,” Monzon said.
He added Monde Nissin has attracted over 100 global investors in its international book building, with about USD700 million or more than 60 percent of the IPO share value taken up by 11 cornerstone investors.
“(T)his landmark Philippine IPO (is) showcasing how the PSE is able to attract world-class investors and serve as a conduit of large companies in raising capital needed for various purposes,” Monzon said.
More investments, jobs
With the amount raised by the food manufacturer in its IPO, Finance Secretary Carlos Dominguez III expects the proceeds to be invested to grow its business in the country and to create more jobs for Filipinos.
“Expanding business activities and introducing new high-value investments into our economy will help us speed up our recovery efforts,” Dominguez said in his remarks.
He said landmark offerings from major companies including from retail, real estate, and telecommunications sectors proved that it is still an “exciting time” for the local bourse despite the ongoing global health and economic crisis.
Dominguez is also optimistic that the PSE is poised to witness more “blockbuster offerings” as investors’ interest in the local market continues to grow.
“These promising developments underscore the importance of rapidly developing our capital markets. On the part of the government, let me assure you of our determination to advance the reforms that aim to further deepen our capital markets and develop a broad-based and inclusive financial system fit for the 21st century,” he added.
Filipino brand
Trade Secretary Ramon Lopez has also welcomed the largest listing in the PSE being done by a Filipino brand.
Nissin Monde started as a small company in Sta. Rosa, Laguna 40 years ago, with its brands becoming household names in the Philippines, including Lucky Me! noodles, SkyFlakes, and Fita crackers
“Your amazing growth story presently serves as an inspiration for our country’s business sector. Founded in 1979, you started with first-year revenues of less than USD100,000, and now you’ve managed to grow the business to a USD5-billion company, and that is amazing,” Lopez said.
Biz expansion
In a press conference following the listing ceremony Monde Nissin chief finance officer Jesse Teo said the company has set a capital expenditure of PHP26.5 billion, or 35 percent of the estimated net proceeds, in the next three years.
Teo said PHP8 billion will be spent this year, PHP9 billion in 2020, and PHP10 billion by 2023.
Monde Nissin director, executive vice president, and chief executive officer Henry Soesanto said the new funding will enable the company to “supercharge its growth” to expand its research and development, technology, and production capacity.
Soesanto added the firm’s mission has evolved towards improving the wellbeing of people and the planet.
“As we involve and transform ourselves into the journey to create a future of food that is deliciously, nutritiously better for everyone and also better for the planet. This way, as a business, we perform our goal to promote social progress. We can find purpose in our work, we can find meaning in our investment,” he said. (PNA)
