Manila snackmaker’s flat IPO could find some sparkle


(The author is a columnist for Reuters Breakingviews. The opinions expressed are their own.)

HONG KONG (Reuters Breakingviews) – WITHOUT FIZZ. The prices for the initial public offering debut are good, but the listings are a game in the long run. That’s what bankers say when their client slips on day one of trading. Snack and juice maker Monde Nissin, which also owns the meat alternative Quorn, opened an apartment in Manila after its $ 1 billion float – the largest in the Philippines by far. But even record-holders will struggle to outgrow their market, and Manila’s IPO record is not great.

Of the country’s last 10 food and drink IPOs, half saw an average decline of 13%, and four others an average increase of 6%, according to Lightstream analyst Oshadhi Kumarasiri, posted on Smartkarma. Only one has achieved true pop, up 50%. The good news is that those that open lower tended to trade steadily afterwards and rise again in the third month. World Nissin has rated its Snacks and Quorn units fairly, according to estimates from Breakingviews. The fizz is just on hold for now. (By Jennifer Hughes)

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