(Bloomberg) -- Figaro Coffee Group Inc. jumped to a record as Philippine’s largest instant noodle maker Monde Nissin Corp. acquired a 15% stake in the company, giving the local coffee chain and restaurant operator more funds to expand its store network. 

Shares of Figaro advanced 5.6% Thursday, trimming earlier gains of as much as 6.7%, while volume surged about 24 times of its three-month daily average. Monde, on the other hand, declined 2.5%.

Monde will buy 15% of the company for 820.3 million pesos ($15 million), boosting Figaro’s coffers which include 698 million pesos raised through an initial public offering a year ago. Analysts said this would enable Figaro to ride the growing momentum in the economy’s reopening and double its company-owned store count by 2024.

“The transaction makes sense for both,” says AP Securities analyst Francis Subido. “With Monde on board, Figaro gets procurement and financial capabilities to become a stronger player.” 

Additionally, Monde will be able to tap Figaro’s stores to sell its pastries and alternative meat products, he added. “It’s a small investment for Monde but the potential payback is huge.”

Figaro Coffee to Add 61 Stores in Three Years, Eyes Acquisitions

Priced cheaper than its bigger rivals Starbucks Corp. and Jollibee Foods Corp., Figaro’s coffee joints, pizza shops and Chinese restaurants are gaining a following among middle-income households whose purchasing power has been eroded by the pandemic and the fastest inflation in 14 years. 

“Figaro’s strategy is competitive pricing. It’s more affordable and has bigger servings, giving more value than its rivals,” Subido said. “Monde raises Figaro’s X-factor that could create a strong restaurant player should this partnership work.” 

Monde Nissin to Raise $1 Billion in Philippines’ Biggest IPO 

(Updates with closing price and adds chart.)

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