Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2024-01-29
Length: 20 pages
Data source: Published sources
Topics:
IPO analysis; Discounted cash flow (DCF) valuation; Comparable multiples valuation; Weighted Average Cost of Capital (WACC); Stock valuation; Monde Nissin IPO; Financial management; MBA program; Capital budgeting; Corporate valuation; Investment banking elective; COVID-19 lockdown impact; Philippine food industry; Stay-at-home orders; Economic recovery post-vaccine
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Abstract
In May 2021, a recent MBA graduate and retail investor, read an announcement about Monde Nissin Corporation launching an initial public offering of 3.6 billion shares at PHP13.50 per share. The company expected to raise PHP48.6 billion in the largest common share offering ever in the Philippines, while the country was still in the middle of a COVID-19 pandemic lockdown. However, economic and stock market conditions were expected to improve after the availability of vaccines and anticipated end of the lockdown. The investor planned to run a discounted cash flow valuation and comparable multiples analysis of Monde Nissin Corporation to determine if he should invest in the initial public offering. He also wanted to assess the attractiveness of the food industry and the merits of investing in the company, which was the market leader in all of its product categories.
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Abstract
In May 2021, a recent MBA graduate and retail investor, read an announcement about Monde Nissin Corporation launching an initial public offering of 3.6 billion shares at PHP13.50 per share. The company expected to raise PHP48.6 billion in the largest common share offering ever in the Philippines, while the country was still in the middle of a COVID-19 pandemic lockdown. However, economic and stock market conditions were expected to improve after the availability of vaccines and anticipated end of the lockdown. The investor planned to run a discounted cash flow valuation and comparable multiples analysis of Monde Nissin Corporation to determine if he should invest in the initial public offering. He also wanted to assess the attractiveness of the food industry and the merits of investing in the company, which was the market leader in all of its product categories.