You’re gonna love May: Exciting listings await stock investors

Two large offerings will come to the local stock market in May, with food manufacturing giant Monde Nissin and renewable energy AC Energy Corp. (Acen) bringing to public hands as much as P88.93 billion worth of stocks.

The Philippine Stock Exchange Inc. (PSE) has approved the P72.45-billion initial public offering (IPO) planned by Monde Nissin, potentially the largest stock market debut in the country, as well as the follow-on offering of as much as P16.48 billion sought by AC Energy.

“As a company responsible for several household brands in the food sector, Monde Nissin is certainly a welcome addition to our roster of listed companies. We are pleased that the company chose to raise capital and list in the PSE as investors have been looking forward to this IPO,” said Ramon Monzon, president and chief executive of PSE.

For local small investors

Monde Nissin will offer 3.6 billion primary shares and up to 540 million over-allotment option shares at a price of up to P17.50 apiece. The offer price will be finalized on May 18, 2021 after a book-building process, while the offer period will run from May 24 to 28. Tentative listing date is on June 7, 2021.

Ten percent of Monde Nissin’s firm offer shares will be reserved for local small investors, who may subscribe to the IPO via the PSE EASy website or through the mobile app.

“We are grateful for the PSE’s and SEC’s favorable consideration of our registration statement, subject to compliance with certain conditions. We are excited about the prospect of becoming a global public company and believe that Monde Nissin provides a compelling investment opportunity,” Monde Nissin said in a statement on Friday night.

Primary offer

The offering will bring to public hands about 20 percent of Monde Nissin’s shares. The company intends to use proceeds from the primary offer to fund capital expenditure, redemption of the Arran Convertible Note and repayment of loans to commercial banks.

After its stock rights offering in January, Acen will conduct its follow-on offering on May 3 to 7. Tentative listing date is on May 14.The primary offer will consist of as much as 1.58 billion shares, which will be offered to the public at a price between P6 and P8.20 apiece. About 330.25 million will form part of the secondary shares offering. The proposed equity deal also comes with an overallotment option consisting of up to 100 million common shares.

Acen will use net proceeds from the primary offer to partially fund the development of power projects, inorganic growth opportunities, repayment of loans and reduction of payables, as well as other general corporate requirements.

Acen has set a bold goal to build five gigawatts of renewable energy by 2025 and become one of the largest listed renewables platforms in Southeast Asia. INQ