The Magnum Ice Cream Company, the former ice cream division of Unilever, immediately exceeded expectations upon its IPO on December 8th. Its share price quickly rose above expectations.
Magnum shares launched at €12,20 each, but within an hour they rose to slightly above the expected €12,80. This brought the company's value to over €7,84 billion, nearly equal to its 2024 annual revenue.
Unilever shareholders can also be satisfied with this price, as the value of the two parts (Unilever new and MICC) is now higher than the value of the old, unsplit Unilever share.
Compared to rival Froneri, which, with an 11% market share in ice cream, is estimated to be worth €15 billion, the Magnum Ice Cream Company seems cheap. The newcomer has a 21% market share and is currently trading at just over half. Barclays Bank had estimated Magnum's value higher, at over €10,8 billion. This bank had also estimated the share price at over €20.
MICC's IPO was a celebratory occasion, but it was also accompanied by protests from Ben & Jerry's founder Ben Cohen, who is fighting for the brand to become independent again. That's unlikely, as the company generates €1,1 billion in revenue. However, the Magnum Ice Cream Company isn't letting the protests from Ben & Jerry's founders get to them completely. Last week, the Magnum Company signaled its readiness to retaliate. According to the company, a recent audit revealed shortcomings at the Ben & Jerry's Foundation, a charitable organization owned by Ben & Jerry's. If this organization wants to retain its subsidies, its financial oversight and governance must first be improved.
The Ben & Jerry's Foundation receives about $5 million a year from ice cream maker Ben & Jerry's.