Add thelocalreport.in As A Trusted Source
Magnum Ice Cream Co. made its much-anticipated stock market debut in Amsterdam on Monday, with each share trading at €12.96.
This initial valuation implies a market capitalization of €7.93 billion ($9.24 billion), marking the finalization of its long-awaited spinoff from consumer goods giant Unilever.
Unilever divested the ice cream unit, citing the complex operational demands of its cold supply chain, which differs significantly from its other food brands and personal care products such as Dove soap and Ax deodorant.
Magnum, now working independently, aims to focus exclusively on ice cream to increase productivity.
The company had previously warned that its stock could face downward pressure quickly, as its shares are not immediately eligible for inclusion in major indices such as the FTSE.
The initial market valuation came in just below Magnum’s 2024 revenues of €7.9 billion and, according to research firm Morningstar, nearly eight times its projected 2025 adjusted earnings before interest, taxes, depreciation and amortization.
Magnum, which is now the world’s largest standalone ice cream business and includes popular brands such as Walls and Cornetto, also launched listings in London and New York on Monday.
Prior to its prospectus publication, Barclays analysts had estimated a high equity value for the company, estimating it at between €10.1 billion and €10.8 billion, assuming a share price of more than €20. The reference price was initially set at €12.8 per share.
Magnum rival Froneri, a joint venture between PAI Partners and Nestle NESN.S , secured the investment in October, valuing the company at €15 billion. According to Magnum’s prospectus, Froneri’s market share is about 11 percent, while Magnum’s is 21 percent.
“I think with the lowering of the reference price, they have made the stock attractive to new investors,” Fernand de Boer of investment bank DeGruff Pieterskam told Reuters. He said the price also avoided the risk of a big drawdown due to index investor selling.
Limited demand could also be a factor, Degroof Peterkam said in a note, while the substantial costs of the separation from Unilever and the fact that there will be no dividend in 2026 could add short-term pressure.
Unilever shares were the biggest faller on the STOXX 600 on Monday, falling nearly 4 percent, according to LSEG data, as Magnum’s earnings miss caused temporary volatility.
Unilever retains a 19.9 percent stake in the business but plans to exit within five years. It will announce the share consolidation ratio later on Monday.
Magnum CEO Peter ter Kulwe said on Monday the company had achieved a “proud milestone” and would be “agile, more focused and more ambitious than ever” as an independent listed company.
Magnum, which will capture more than a fifth of the $87 billion global ice cream market, is betting on the appeal of the tasty snack.
The listing tests investors’ appetite for the sugar-heavy product at a time when GLP-1 weight loss drugs have shaken up consumer trends and US President Donald Trump is pushing a ‘Make America Healthy Again’ campaign.
With Ben & Jerry’s, Magnum would inherit a relationship that had soured over the years. Magnum said Tuesday that the Ben & Jerry’s Foundation, a U.S.-based charitable group funded by the brand, must address deficiencies in financial controls and governance to maintain full funding.
This is an issue that seriously affects Magnum. Ben & Jerry’s annual revenue of €1.1 billion ($1.28 billion) accounts for about 14 percent of Magnum’s global turnover, while Unilever’s accounts for only 1.8 percent.