By Anshuman Daga and Neil Jerome Morales
SINGAPORE/MANILA, March 11 (Reuters) - Food maker Monde
Nissin Corp is aiming to list its shares in the first half of
this year, in the Philippines' first billion dollar IPO, sources
said, as the company hopes to attract investors to its expanding
overseas meat alternative business.
Last week, Monde Nissin filed for an initial public offering
(IPO) that could raise up to 63 billion pesos ($1.3 billion) at
the top end of an indicative price range, kicking off what is
expected to be a record year of fundraising for local firms.
It did not give a timeline for the IPO's launch.
The four-decade-old group's market leading position in the
Philippines, with its ubiquitous Lucky Me! instant noodles and
SkyFlakes biscuits, has propelled the family behind the
conglomerate to the ranks of the country's richest.
Monde Nissin enjoys core profit margins of about 25% in its
entrenched local food business versus roughly 15% at key rivals.
"Given the size of the IPO, global funds are very keen to
look at it and there's interest from sustainability funds who
want to deploy capital," said one source.
Monde Nissin declined to comment.
With an eye on international expansion, the company, whose
founders keep a very low public profile, acquired Britain's
Quorn Foods for about $830 million in 2015.
Monde Nissin plans to expand Quorn's capacity and reach in
key markets such as the United states. The meats alternative
business, comprising Quorn and Cauldron brands, contributed 22%
to Monde Nissin's net sales of $1.4 billion last year.
"The way I see it, they are expanding their market. They are
creating more avenues," said Manila-based Robert Ramos, trust
group head at Rizal Commercial Banking Corp.
"There's a lot of interest in green investment and ESG
(environmental, social and governance factors) this day and age.
That gives this particular issuer some advantage," said Ramos.
The global meat substitutes market has surged over recent
years on consumer concerns about health, sustainability and
animal welfare, that have helped firms such as Beyond Meat
BYND.O and Impossible Foods lure record investments.
"The primary reason for the IPO is that the group sees
significant growth opportunities for its business in Asia as
well as in the UK," said another source.
Last year, Quorn struck a multi-year partnership with
Liverpool Football club to offer meat-free meals on match days.
The sources who declined to be identified ahead of the
listing, expected Monde Nissin to be valued at about $6.5
billion at the top-end. Conglomerate San Miguel Corp's SMC.PS
food and beverage unit FB.PS is valued at $7.8 billion while
snacks and beverage maker Universal Robina Corp URC.PS is
valued at $5.8 billion.