Monde Nissin makes a record-breaking public debut in the Philippine Stock Exchange. However, it fails to sustain the positive momentum after closing lower than the offering price.
The company is one of the leading food retailers in the country, dominating stacks on biggest to smallest grocery stores. Founded in the early 1980s, at the height of the country’s political upheavals, it survived through the ups and downs of the business environment.
Currently, it offers a ubiquitous variety of products, namely biscuits, baked treats, and instant noodles. The latter is the most famous among its products on the line.
The Laguna-based entity raised $1 billion during its initial public offering. This is the highest record in the Philippine stock market history. This also ranks second in its home region, Southeast Asia, after PTT Oil raised $1.8 billion earlier this year.
In an outline for public debut, the Filipino food company noted that the new funding would be leveraged to fund research and development plans.
MONDE stock opened the market valued at PHP 13.48, which is a downgrade from the original offering price of PHP13.50. It managed to recover and hit PHP13.56 at one point of the early trade before falling to its lukewarm fate for the day.
Meanwhile, the country’s only index, PSEi, failed to dodge the bullet of the sluggish market sentiment and ended 0.66% lower.
The bourse still operates at a limited time frame as the coronavirus pandemic continues to wreak havoc in the Philippines.
So far, the Philippine Stock Exchange in Southeast Asia’s worst performer has lost 7% off its value since the pandemic. There is still no-clear cut projection on whether it will make up for the losses anytime soon.
Will Del Monte Follow MONDE’s Footsteps?
It seems like the Philippines is in on the growing appetite for food retailers in 2021. In a brief context, the country’s food retailer industry outperformed other sectors as the country remains heavily focused on retailing business.
In April, another food juggernaut, Del Monte Philippines, asserted interest to join the bandwagon and make a record-splashing IPO.
During its filing among regulators, the canned pineapple drink manufacturer plans to raise more than 900 million in local currency, equivalent to $44 million. Should this pushes through, it will become the Philippines’ second-biggest public debut in 2021.