Stock down to HK$3.27 in early afternoon as 48 million shares change hands
Shares in Japanese instant noodle giant Nissin Foods fell below their initial public offering price on debut in Hong Kong trading on Monday.
The company’s shares opened down 10 per cent at HK$3.2, and traded at HK$3.27 in early afternoon, versus their offer price of HK$3.54. About 48 million shares changed hands, with a turnover of HK$156 million.
The company behind the Cup Noodles and bestselling Demae Itcho brands, had hoped to leverage its HK950 million Hong Kong listing for expansion in China’s premium instant noodle market. The company said its public offering, priced towards the bottom of an expected range of HK3.45 to HK$4.12 per share, had been oversubscribed by 32 times.
Instant noodles have been falling out of favour on the mainland, as consumers become more affluent and health conscious. Nissin Foods, which ranks at No. 5 in China’s ramen market with a 2.6 per cent market share, however, promises a shift in quality to higher-priced “premium” items.
Kiyotaka Ando, the company’s chairman, has previously said in Hong Kong that China’s demand for premium ramen brands was still growing, with the most recent figures showing a compound annual growth rate of 11.2 per cent from 2012 to 2017.
