Monde Nissin Corp. is likely to generate a dividend yield of 8.11 percent under its maximum offer price of P17.50 per share, said stockbroker Regina Capital and Develoment Corp. (RCDC)
In an investors’ note, RCDC said given the company’s initial public offering (IPO) price, it gives the fund raising activity a “relatively attractive price to earnings(P/E) ratio compared to its competitors.
RCDC said as a food manufacturer, Monde Nissin enjoys a leading position in the instant noodles, sweet biscuits, and savory biscuits categories.
“These categories are projected to grow at CAGRs (compounded annual growth rates) of 6.8 percent, 5.8 percent, and 6.1 percent, respectively,” the stockbroker said.
“The company also owns Quorn, which is the best-selling meat alternative protein in the UK and has a 5 percent market share in the US,” it added.
Reuters meanwhile reported Monde Nissin has secured institutional investor commitments for a $1 billion worth of its shares at P13.50 apiece each, in what would be the Philippines’ biggest IPO on record, citing three sources familiar with the matter.
A spokesman for Monde Nissin declined to comment.
“Monde could have priced the IPO higher but it was best to leave some money on the table in these choppy markets,” said one person who did not want to be identified as the fixed price has not been announced.
More than a dozen cornerstone investors, including some of the world’s largest asset managers are backing the IPO, the sources said.
