Japan's Nissin Foods noodle unit plans $145 mln IPO in Hong Kong (updated)

Nissin Foods Holdings

29/11/2017 03:52

* Nissin's indicative range at HK$3.45-4.21 apiece 
    * Ranked 2nd in China's premium instant noodle market in 
2016 
    * Trading debut set for Dec. 9 
 
 (Add Nissin's China market share, use of proceeds, IPO 
managers, Tingyi context, past Japanese firms listing in HK) 
    HONG KONG, Nov 29 (Reuters) - Nissin Foods Co Ltd, an 
instant noodle unit of Nissin Foods Holdings Co Ltd  2897.T , 
said on Wednesday it aims to raise up to HK$1.13 billion ($145 
million) in an initial public offering (IPO), in a rare instance 
of a Japanese firm listing in Hong Kong. 
    Nissin Foods Co plans to offer 268.58 million shares in the 
IPO, of which 10 percent will be earmarked for retail investors, 
at an indicative range of HK$3.45 to HK$4.21 apiece, the company 
said in a filing on Wednesday. 
    The final offer price will be announced on Dec. 8 and trade 
in the shares is expected to begin on Dec. 11. 
    The Japanese parent's stake in Nissin Foods Co will be 
reduced to 73.89 percent, from 100 percent, on completion of the 
offering. 
    Nissin Foods Co, which makes and sells noodle under brands 
NISSIN and DOLL, ranked fifth-largest instant noodle company in 
China in terms of retail sales value in 2016, the company said 
citing consultancy Frost & Sullivan. 
    The company ranked second in the mainland's premium instant 
noodle market in retail sales value, accounting for 19.8 percent 
of the premium instant noodle market, it added. 
    Nissin Foods Co also makes and sells frozen food products 
including dim sum dumplings and noodles, and food and beverage 
products such as snacks, sauces and mineral water. 
    Proceeds from the offering will be used to upgrade and 
expand production facilities, enlarge its distribution network 
in China and to fund strategic partnerships and acquisitions as 
it further diversifies its product offering, the company said. 
    Nomura International and Mizuho Securities are joint 
bookrunners and joint lead managers of the global offering. 
    Many niche domestic snack food brands have expanded their 
pool of millennial customers through interactive online and 
mobile campaigns that emphasise quality ingredients and 
production methods, which have helped them outpace traditional 
leaders such as Tingyi (Cayman Islands) Holding Corp  0322.HK . 
    Tingyi, the owner of Chinese instant noodle brand Master 
Kong, said earlier this month that it was facing pressure from 
China's changing economic development, rising raw material 
costs, industrial upgrade and fast-changing consumer demand. 
 urn:newsml:reuters.com:*:nL3N1NF3YE  
    Nissin will join just a handful of Japanese firms listing in 
Hong Kong. Others include department store operator Aeon Stores 
Hong Kong Co Ltd  0984.HK  in 1994, Uniqlo parent Fast Retailing 
 9983.T   6288.HK  in 2014, and pachinko hall operators Dynam 
Japan Holdings Co Ltd  6889.HK  in 2012 and Niraku GC Holdings 
Inc  1245.HK  in 2015. 
($1 = 7.8038 Hong Kong dollars) 
 
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China's Tingyi Q3 profit jumps, but margin pressure remains    
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 (Reporting by Donny Kwok; Editing by Edwina Gibbs and 
Christopher Cushing) 
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters 
Messaging: donny.kwok.reuters.com@reuters.net)) 
 
Keywords: NISSIN FOODS CO IPO/HONGKONG