Monde Nissin Corp. dipped 0.15 percent, down P0.02 to P13.48, on its listing day Tuesday after successfully raising P55.89 billion through the largest initial public offering (IPO) in the country and in Southeast Asia.
The company’s share price opened at P13.48, a discount to its IPO price of P13.50 and hit a high of P13.56 and a low of P13.46.
The company offered to the public an initial 3.6 million common shares to cover the firm shares and another 540 million shares covering the greenshoe option at an offer price of P13.50 per piece. About 70 percent of the available shares are to be sold overseas, of which the company earlier said attracted interest to 11 institution investors.
Monde Nissin said its international and domestic book building process was multiple times oversubscribed with the overseas demand nearly six times oversubscribed.
Monde Nissin said the proceeds will be used to fund capital expenditures, and redemption of obligations.
Aristotle Reyes, Jr. trader at UPCC Securities Corp., said the dip in Monde Nissin’s share price can be attributed to the general market condition which is in a consolidation.
The company’s valuation at 28x price to earnings ratio is also something investors are looking at carefully, if it can live up to expectations, Reyes said.
Emilio Aquino, Securities and Exchange Commission chairman, in addressing the attendees in the listing ceremony, said the success of Monde Nissin’s IPO “could hopefully help regain the confidence of the investing public on the Philippine stock market; as well as stir up our economy considering majority of its proceeds from the offering will be used for capital expenditures in its operations in the Philippines.”
“IPOs typically spark significant positive spillovers in local economies. It highlights it is the listing decision, rather than the actual capital raising, that boosts local labor markets,” he said.
