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Stock Commentary

Monde Nissin has 10.7 billion shares coming out of lockup on Monday

Merkado Barkada
Monde Nissin has 10.7 billion shares coming out of lockup on Monday
Hey, at least the company has paid off a lot of debts, right?
Merkado Barkada

Monde Nissin [MONDE 17.88 0.78%] disclosed on Wednesday that over 10.7 billion common shares would be coming out of the mandatory 180-day lockup on November 28th, and would be available for trading on the morning of November 29 (Monday).

The shares in question belong to Chairman Hartono Kweefanus (4.2 billion), President Betty Ang (3.3 billion), CEO Henry Soesanto (1.5 billion), Vice Chairman Hoediono Kweefanus (0.9 billion), and Treasurer Monica Darmono (0.8 billion).

Together, these shares represent just under 60% of MONDE’s total shares outstanding. There is still a 1.6 billion share block that is under a 365-day lockup that will become tradeable on June 1 later next year.

MB BOTTOM-LINE

I think there are big question marks here, only because we know so little about this ownership group, and as a derivative of that lack of knowledge, we know so little about their intentions going forward. If you’re a MONDE holder and you’re worried about a rug-pull selling spree, then this is the event that you’re most worried about.

Up until Monday, only around 31% of MONDE’s shares have been active and tradeable, but come Monday morning, that number will triple to over 90%. Again, I’m not saying that we need to regard the Kweefanus brothers or Betty Ang with suspicion, only that if this was a concern to you, then this is the time to be concerned. MONDE’s stock has taken a beating in recent days, but even that 6% drop only pushes MONDE’s value back to... “last Friday”.

MONDE is up 18% in just over a month, but is still a 13% increase away from its all-time high that was set in September (just the day before that pesky “cornerstone investor” dumped  271 million MONDE shares and kicked off a 25% price drop). Hey, at least the company has paid off a lot of debts, right?

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
MONDE NISSIN CORP PHILIPPINE STOCK EXCHANGE
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