Nissin to Fund China Market Expansion with Hong Kong IPO

Nissin Foods Co Ltd announced on November 29 that it plans to raise as much as HK $1.13 billion (US $145 million) in an initial public offering floated on the Stock Exchange of Hong Kong. The Japanese company, which specializes in manufacturing and marketing instant noodles, also makes frozen food products including dim sum dumplings and other items.

Nissin Foods reported aims to issue 268.58 million shares in the IPO, 10% of which will be offered to retail investors, at a prospective price range of HK $3.45 to HK $4.21 each. The final price will be determined on December 8, and trading will likely start on December 11.

The Japanese parent’s stake in Nissin Foods Co will be reduced to 73.89%, from 100%, on completion of the offering.

Proceeds from the IPO will be employed to upgrade and expand production facilities and enlarge the company’s distribution network in China, and to finance strategic partnerships and acquisitions as Nissin diversifies its product lines in the PRC.

Nissin is ranked as the fifth largest supplier of instant noodles in China, and is the No. 2 seller of premium instant noodles with a 19.8% share of the market. The top player is Tingyi Holding Corp., which packs the Master Kong noodle brand.