Nissin to spin off Hong Kong unit for a US$200 million stock sale
Nissin Foods Holdings, the inventor of the instant cup noodle, is planning to spin off its China and Hong Kong businesses for a listing on the Hong Kong Stock Exchange, according to a statement by the company.
The company, founded in 1948 by the late Momofuku Ando -- who’s been called the Father of Instant Noodles -- is expected to raise as much as US$200 million through its Hong Kong IPO. Osaka-based Nissin (日清) did not disclose the size of its IPO.
China consumes about 38.5 billion servings of instant noodles a year, almost 40 per cent of global demand in 2016, making the country the world’s biggest market for the foodstuff. Nissin wants a bigger foothold closer to China to compete with the Master Kong brand of noddles sold by Taiwanese noodle maker Tingyi.
The proposed listing will help Nissin expand its presence in Hong Kong and mainland China, through strategic partnerships and acquisitions, the company said. The Hong Kong unit will also extend Nissin’s sales and distribution network, and enlarge its production and research.