On June 1, 2021, Monde Nissin (MONDE) completed its Initial Public Offering and raised a gross amount of 48.6 billion. MODE priced its IPO at 13.50 a share.
MONDE during its IPO touted its investment in Quorn, a fake meat maker, as its next growth area. As reported in Bloomberg, MONDE Chief Executive Officer Henry Soesanto said, “The alternative meat category is going to explode, and we want to get our capacity ready as soon as possible. We need big money for that.” MONDE intended to use some of its IPO proceeds to expand Quorn in the US. The US is said to be the world’s biggest market for plant-based alternative food.
“Our ambition is to become the king of alternative chicken globally,” Quorn Chief Executive Officer Marco Bertacca told Bloomberg before MONDE’S IPO.
In 2022, just a year after the IPO, MONDE took an impairment charge of 18.9 billion on its investments in Quorn. The very investment it considered as promising became the very source of its pain. As a result of the impairment, MONDE registered a deficit of 7.1 billion.
Did the conditions for the impairment of the Quorn investment exist during the MONDE IPO? The market is asking. MONDE’s share price is plummeting.
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