Monde Nissin, best known for Lucky Me! instant noodles, raised on Tuesday $1 billion (P47.6 billion) from the biggest initial public offering in Philippine history, proceeds of which will be used to bet on the fast-growing alternative meats market.
The company that also controls fake meat maker Quorn is expecting "exponential growth" in the alternative protein segment, which could make up 10% of the market in 10 years from 1% currently.
"We don't want to miss that opportunity. We want the funds ready," Monde Nissin CEO Henry Soesanto told Bloomberg Television on the day of the IPO at the Philippine Stock Exchange.
"That's the mega trend in the world," he said.
Lucky Me! will also benefit from the IPO, Soesanto said. "We are going to improve the health proposition of the instant noodle to make it much healtheir, to make it more sustainable in the future."
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Shares of Monde Nissin were down 0.15% one hour after the market opened to P13.48, from its list price of P13.50.
The company is "a bit different," embarking on a blockbuster IPO when most companies are scaling back operations because of the pandemic, Soesanto said. The amount is the "sweet spot" that will allow Monde Nissin to invest and pay off some debt, he said.
"Despite the pandemic, we are doing quite okay. We are part of the companies that have to expand a lot during this period. The portfolio that we have, alternative protein, is growing exponentially," he said.
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