Dec 5 (Reuters) – The Magnum Ice Cream Company’s reference price was set at 12.80 euros ($14.89) per share for its stock market debut on Monday, Euronext said in a notice on Friday.
Magnum’s long-awaited spinoff from consumer goods conglomerate Unilever was delayed by a month by the U.S. government shutdown and will see the company become the world’s biggest standalone ice cream business, home to brands including Wall’s, Ben & Jerry’s and Cornetto. Magnum will have secondary listings in New York and London.
The reference price acts as a guide to a company’s value ahead of a direct listing or spinoff. Unlike an initial public offering, there is no new capital being raised.
Magnum said the reference price does not set the opening price and has no impact on subsequent trading or represent the company’s valuation, with the share price being determined as a result of a short auction pre-market opening.
Euronext set the internal reservations thresholds, a form of pricing volatility control that can lead to a trading halt, at 20% above or below the reference price.
Unilever is retaining a 19.9% stake in the business, but plans to exit within five years.
Unlike Unilever, Magnum’s shares will not be eligible for inclusion in FTSE Indices. Magnum has warned its shares may face downward pressure after the listing as index-tracking funds are forced to sell their holdings.
($1 = 0.8595 euros)
(Reporting by Dimitri Rhodes, Alexander Marrow and Charlie Conchie; Editing by Matt Scuffham and Diane Craft)
Comments