Two families in Southeast Asia have just joined the “village” of billionaires when the largest instant noodle company in the Philippines was IPO.
After Monde Nissin raised a record of more than a billion USD in its IPO last week in the Philippines, two Indonesian and Filipino families that own 70% of the company have become billionaires with total assets of about 3. $6 billion, according to the Bloomberg Billionaires Index.
Currently, Indonesian Chairman Hartono Kweefanus owns 23% of Monde Nissin shares. His brother Hoediono, currently serving as vice president, holds a 5.3% stake. While Hoediono’s wife, Betty Ang from the Philippines, owns 18%. In addition, other members of these two families own 23.7% shares of the company.
Monde Nissin’s brands have been household names in the Philippines for more than four decades. In particular, the company has thrived during the pandemic, when food and beverage outlets were closed, forcing people to stay at home.
Stephen CuUnjieng, Senior Advisor at investment bank Evercore, thinks it’s really a “good time” for Monde Nissin to go public, given the popularity of packaged food as an alternative to eating out during the lockdown. .
Monde Nissin was founded in 1979 by Mr. Hidayat Darmono, the father of the current president. At the beginning, it was just a biscuit manufacturer. About a decade later, the company switched to making instant noodles, launching the Lucky Me! brand. Probably everyone in the Philippines grew up with this brand and continues to stick with it, according to Monde Nissin.
Now, Lucky Me! is the best-selling instant noodle in the Philippines, with a 68% market share, according to the IPO prospectus. It accounted for half of Monde’s 68 billion pesos ($1.4 billion) in sales last year. In addition, the company also sells SkyFlakes crackers and Quorn vegetarian meat, which are available in more than 30 countries. The company recorded a 26% increase in profits last year.
Arielle Santos, consumer analyst at Regina Capital Development, thinks Monde still has a lot of room for growth. “Noodle consumption in the Philippines has not yet reached saturation,” the expert assessed.
The company will use the funds raised from the IPO to expand its vegetarian meat business. Monde CEO Henry Soesanto, also a member of the family, predicts the market will “grow exponentially”.
Monde Nissin acquired British vegetarian food producer Quorn Foods for £550 million ($780 million) in 2015. Monde’s prospectus cites a Barclays estimate that the market for meat made with real ingredients The asset will reach $140 billion in size by 2029. Soesanto said Monde wants to have capital ready to use “immediately for capacity expansion” so now is the right time for an IPO.
Session An (according to Bloomberg)