Biggest IPO listing: Lucky Me maker shoots for ₧72-B goal
MONDE Nissin Corp., the maker of famous Lucky Me! instant noodles and Skyflakes biscuits, has filed for a P72.45-billion initial public offering, which would be the country’s biggest listing to date.
In its filing with the Securities and Exchange Commission (SEC), the company said it will sell some 3.6 billion common shares and an overallotment option of 540 million shares, at an offer price of up to P17.50 apiece.
The overallotment option shares will mainly come from the holdings of Indonesian Henry Soesanto, the company's chief executive.
Its shares will be listed for trading at the Philippine Stock Exchange.
The company engaged UBS AG Singapore Branch, Citigroup Global Markets Limited, Credit Suisse (Singapore)
Limited and J.P. Morgan Securities PLC as joint global coordinators for the offer. BDO Capital and Investment Corp., BPI Capital Corp. and First Metro Investment Corp. will serve as local lead underwriters.
Some 70 percent of the share sale will be offered to institutional investors overseas and the rest to the domestic market.
The company is about 70 percent owned by Indonesian investors and the rest by Betty Ang, the company's president.
Main shareholders of the company before the IPO include Ang, who owns 22.73 percent of the company, Indonesians Hartono Kweefanus with 29.33 percent ownership and Soesanto with 12.63 percent.
Ang is married to Hoediono Kweefanus, Hartono's brother, and owns 6.6 percent of the company.
Soesanto, meanwhile, is the wife of Hoediono's sister Monica Darmono, the company's treasurer who owns 5.33 percent.
Proceeds from its primary offer will be used to fund the company’s capital expenditures at about P22.22 billion or 37 percent of the total; some P17.3 billion or 29 percent will be for redemption of convertible notes it gave to Arran Investment; and P20.87 billion or 34 percent will be for repayment of loans.
In April 2019, the company issued in favor of Arran Investment Pte. Ltd. a convertible note at an issue price of P9.1 billion. The note is convertible into common shares of the company representing approximately 6.44 percent of the total issued and outstanding capital stock of the company on a fullydiluted basis.
It also had to repay the loans borrowed by the company, Monde Nissin (UK) Ltd and Sarimonde Foods Corp. from commercial banks.
The company is one of the top food manufacturers in the country with a portfolio of various iconic and well-recognized brands. The group’s two core businesses are the Asia-pacific branded food and beverage business and the meat alternative business, which includes the production, marketing and sales of the Quorn and Cauldron meat alternatives brands.
Its instant noodle brands in the country corners 68 percent of the local market, while its biscuits have a 30.5-percent share. The noodles accounted for half of its sales last year in Asia-pacific of about P50.7 billion; and biscuits, at 33 percent.
Quorn Foods is the market leader in the meat alternatives market in the UK with Quorn and Cauldron being the number one and number three brands with 28 percent and 5 percent grocery retail market share by value in 2020, respectively.