Monde Nissin Corp. is modifying the use of the proceeds of its initial public offering proceeds (IPO) in May to cover operating expense for its meat alternative products instead of the original plan to spend just for capital expenditures and debt payments.
The company said the P7- billion allocation for the capital expenditures will now be shared between capital expenditures and operating expense with the expense capped at P4.1 billion.
“The company’s allocation for operating expenses in the meat alternative business will be used as additional investments for brand building, research and development, influencer partnerships, and new process capabilities, among others. This will allow the company to capture the global growth opportunity and strengthen its position as a global leader in the meat alternative business,” it said.
In May Monde Nissin Corp. raised P55.89 billion by issuing 4.14 million shares at P13.50.
When it was doing the IPO rounds, Monde Nissin said the amount will be used to finance key projects, including the completion of the construction of the manufacturing facility in Malvar, Batangas, capacity increase and innovation projects such as the new healthy noodle lines, operational efficiency initiatives and supply network transformation.
Monde Nissin started constructing its Malvar facility in 2020, in the Light Industry and Science Park 4, encompasses the second largest land area among all its Asia Pacific branded food and beverage facilities. It was expected to be completed in the latter part of the year.
The company also planned to install multiple high-speed airflow technology lines for its instant noodle products in the Philippines and Thailand in the next three years that will reduce palm oil content by approximately 55 percent to 70 percent. – Ruelle Castro
