Monde Nissin gears up for planned IPO

MANILA, Philippines - Filipino snack food giant Monde Nissin is gearing up for its planned initial public offering (IPO) and is looking to do the offering as early as the second quarter of 2016, a banking source privy to the matter said over the weekend.

Monde Nissin considered embarking on the IPO as early as this year, but the the company thought it would be better to do the share sale in 2016 because they had to review their financials again following their acquisitions in Australia, the source said.

“They had to recast their numbers. It may be soon after the first quarter of next year,” the source said.

The plan to have the IPO in 2016 instead of this year has nothing to do with the prevailing market volatility, the source also said.

“It’s really reviewing the assets and operations after the acquisition before they do the IPO,” the source added.

In March, Monde Nissin acquired Menora Foods, a family-owned Australian food company, its third acquisition in Australia, having previously acquired the Black Swan and Nudie food brands.

Originally a biscuit manufacturer, the company started as Monde Denmark Nissin Biscuit Corporation in 1980.

It then ventured into the instant noodle business with the Lucky Me! brand, now the leading noodle brand in the country.

In 2002, the company acquired M.Y. San Corporation, which is behind the Sky Flakes and M.Y. San Graham Crackers brands.

Proceeds of the $300-to $500-million IPO would be used to boost operations as the company plans to become a significant food and beverage player in the Asia Pacific region.

Monde Nissin is owned by Betty Ang, hailed by Forbes as the 19th richest person in the Philippines, with a net worth of $905 million in 2014.  The company has been among the Top 1000 companies in the Philippines since 2000.

“Monde Nissin was the first firm in country to sell pouches of dry noodles to make instant soup, and currently boasts more than a 60 percent share in the market and more than 30 percent of the biscuit sector,” Forbes said.

Monde Nissin is in the list of IPO hopefuls that also includes construction companies D.M. Wenceslao and Datem, and retailer Metro Retail Stores Group of the Gaisano family, as well as green architecture firm Italpinas Development Corp.