Shares of food maker Monde Nissin Corp. began trading on the Philippine Stock Exchange (PSE) on Tuesday after its completion of an initial public offering (IPO), deemed as the largest in the country’s history.
Monde Nissin’s share price opened lower at P13.48 apiece, slightly behind its IPO price of P13.50 per share.
“I think everyone already discounted this IPO performance of Monde Nissin given it is a huge listing (approximately $1 billion) in a challenging market environment,” Unicapital Securities equity analyst Christopher San Pedro told GMA News Online.
“I expect this to move like a blue chip stock as a medium to long term consumer play,” San Pedro said.
It is currently trading to a high of P13.56 and a low of P13.46.
The company’s IPO consists of 3,600,000,000 common shares.
It raised P48.6 billion from the offer, excluding underwriting commissions and other offering expenses payable by the company.
The company intends to use the net proceeds of the IPO to fund its capital expenditures at P26.52 billion, redemption of a convertible note at P17.31 billion, and repayment of loans at P16.78 billion.
Monde Nissin’s international and domestic book building process was multiple times oversubscribed.
“We begin life as a public company with significant momentum – our Quorn and Asia-Pacific Branded Food and Beverage businesses are performing well and are poised to capture the tremendous market opportunities that lie ahead,” Henry Soesanto, chief executive officer of Monde Nissin, said in his remarks during the listing ceremony.
“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. We also benefit from our market leading positions across the core segments of our Asia-Pacific Branded Food and Beverage business. 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,” Soesanto said.
Soesanto rang the PSE bell that signaled the start of the company’s trading in the stock market.
PSE President and CEO Ramon Monzon PSE colleagues COO Roel Refran and Issuer Regulation Division head Marigel Garcia were present in the bell ringing ceremony.
Also in attendance for the bell ringing were Monde MY San general manager Keng Sun Mar, Monde Nissin chief strategy officer David Nicol, Monde Nissin chief financial officer Jesse Teo, DCFE Corporation president Emma Bajet, Calaca Harvest Terminal Inc. president Ernesto Ladrido III, Monde Nissin brand manager Yna Alvarez. — RSJ, GMA News