The Magnum Ice Cream Company makes spectacular stock market debut

The Magnum Ice Cream Company (MICC) went public independently today. Unilever’s spin-off ice cream division will now be traded in Amsterdam, London and New York. Investors automatically received shares, but they doubt whether holding on is wise.

Largest ice cream company in the world now independent

Magnum’s IPO is the largest of the year in Amsterdam. Unilever decided to spin off its ice cream activities to focus entirely on brands such as Knorr, Dove and Hellmann’s. The new company includes the brands Magnum, Ben & Jerry’s, Cornetto and Ola.

Investors automatically received one Magnum share for every five Unilever shares. The opening price was 12.20 euros, although it rose to around 12.90 in the first hour. This values ​​the ice cream company at approximately eight billion euros.

According to analysts, that valuation is low. According to stock market commentator Niels Koerts, the reference price of 12.80 euros is “significantly below the actual value”, which he previously estimated at twenty euros per share. This may provide room for price recovery, although analysts also expect price pressure because many investors immediately sell their ‘free’ Magnum shares.

Ambitious plan for growth and savings

Magnum wants to grow in emerging markets such as India, Brazil and Mexico in the coming years. As incomes rise and more households have access to a freezer, the company expects ice cream consumption to increase worldwide. According to the prospectus, the market will grow from 75 billion euros now to 90 billion euros in 2029.

With a market share of 21 percent, Magnum is already the largest independent ice cream company in the world. Last year’s turnover amounted to almost eight billion euros, with a net profit of 595 million. At the same time, the company is strongly committed to cost savings: it wants to save a total of 500 million euros by producing more efficiently and transporting less ice around the world.

Financial director Abhijit Bhattacharya calls the old situation under Unilever cumbersome and slow. As an independent company, he wants to make decisions faster and produce more locally. Magnum hopes to save up to 20 percent in transport costs.

Doubts about health trends and dividends

Yet not everyone is enthusiastic. Some investors are questioning the future of sugary products, especially now that weight loss products such as GLP-1 are gaining ground worldwide. The lack of a dividend in 2026 could also make the stock less attractive for conservative investors.

Analysts also point to an uncertain shareholder base. Because most shareholders received their shares unsolicited, there is a chance that many will sell as soon as the price is favorable. At the same time, there is a lot of interest from new parties: a recent bond issue of three billion euros was seven times oversubscribed.

CEO Peter ter Kulve sees the future positively. He promises a more agile and ambitious company that can move much faster than under Unilever. “We are no longer hiding in the big picture. This is our chance to shine.”