LONDON, Dec 8 — Magnum Ice Cream Company traded at €12.81 (RM61) per share in its Amsterdam debut on Monday, implying a market capitalisation of €7.84 billion, as it finalised a long-awaited spinoff from Unilever.

The listing, which creates the world’s largest standalone ice cream business, will test investor appetite for a sugar-heavy product even as weight-loss drugs have shaken up consumer trends and the Trump administration is pushing a “Make America Healthy Again” campaign.

Unilever is shedding a business unit whose cold supply chain demands more complex operations than its other food brands and personal care products like Dove soap and Axe deodorant. Magnum, meanwhile, is counting on a pure focus on ice cream to improve productivity.

With its shares not immediately eligible for inclusion in major indices such as the FTSE, Magnum had warned its stock may face early downward pressure.

Magnum under pressure from index funds, no dividend in 2026

The initial market valuation was just below Magnum’s 2024 revenue of €7.9 billion and, according to research firm Morningstar, roughly eight times its expected 2025 adjusted earnings before interest, taxes, depreciation, and amortisation.

Magnum — home to brands including Wall’s and Cornetto — is also listing in London and New York on Monday.

Ahead of the publication of Magnum’s prospectus, analysts at Barclays predicted the company would fetch an equity value of €10.1 billion to €10.8 billion and a share price above 20 euros per share. The reference price was set at €12.8 per share.

Magnum rival Froneri, a joint venture between PAI Partners and Nestle, secured investment in October that valued the company at €15 billion. Froneri’s market share is around 11 per cent, according to Magnum’s prospectus, compared with 21 per cent for Magnum.

“I think that with setting the reference price low, they made the stock attractive for new investors,” Fernand de Boer of investment bank Degroof Petercam told Reuters, adding that the price also avoided the risk of a big drop caused by index investor selling.

Limited demand may have also been a factor, Degroof Petercam said in a note, while substantial separation costs from Unilever and the fact there will be no dividend in 2026 could be adding short-term pressure.

Unilever shares were the biggest decliner on the STOXX 600 on Monday, according to LSEG data, falling around 5 per cent, with lost Magnum earnings causing temporary volatility. Unilever is retaining a 19.9 per cent stake in the business but plans to exit within five years. It will announce the share consolidation ratio later on Monday.

Company hits milestone, set to be more agile, CEO says

Magnum CEO Peter ter Kulve said on Monday the company hit a “proud milestone” and would be “more agile, more focused, and more ambitious than ever” as an independent listed company.

Magnum, which will command more than a fifth of the US$87 billion global ice cream market, is betting on the allure of indulgent snacks.

Morningstar said it was optimistic on Magnum’s longer-term outlook.

“Within Unilever, it lacked a dedicated sales force and targeted investment programme, contributing to periods of underperformance,” it said.

With Ben & Jerry’s, Magnum will inherit a relationship that has soured in the past few years. Magnum said on Tuesday that the Ben & Jerry’s Foundation, a US-based charitable group funded by the brand, must address deficiencies in financial controls and governance if it is to maintain full funding.

It is an issue that affects Magnum acutely. Ben & Jerry’s annual revenue of €1.1 billion accounts for almost 14 per cent of Magnum’s global turnover, compared to just 1.8 per cent of Unilever. — Reuters