SEC clears Monde Nissin's record P72.45-billion IPO
MANILA, Philippines — Corporate regulators cleared the planned stock market debut of food manufacturer Monde Nissin Corp., paving the way for the largest maiden share sale in the country's history.
In a statement on Tuesday, the Securities and Exchange Commission said it approved the historic P72.45-billion IPO by Nissin. The mega offer will run from May 17 to 21 while the listing date was set on May 31.
The company behind the hugely popular Lucky Me! instant noodles is planning to initially sell 3.6 billion common shares at P17.50 each, which may be bumped up by another 540 million common shares if there's robust demand for the offer.
Excluding expenses and other charges, Nissin is expected to rake in P60.61 billion in net proceeds, which will be used for capital expenditures (P26.52 billion), redemption of a convertible note (P17.31 billion) and repayment of loans (P16.78 billion).
As it is, the Nissin IPO, including overallotments, is so massive it beats the combined capital raised in all IPOs seen over the past 2 years. The company is set to beat capital raised by Robinsons Retail Holdings Inc., which holds the title of the biggest IPO when it debuted in the Philippine Stock Exchange in 2013.
Nissin will be second company to go public this year, following DDMP REIT Inc. The timing of listing comes at a time local firms had been tapping the financial markets to raise cash following lockdowns that crippled their operations and tarnished their balance sheets.
However, Nissin appeared to have survived the pandemic crunch having increased profits 21.3% year-on-year to P8 billion in 2020. Net sales, meanwhile, grew 3.8% on-year to P67.9 billion.
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