noodle cups
 
HONG KONG — Nissin Foods Holdings Co. Ltd. has announced that its Nissin Foods Co. Ltd. instant noodle unit is looking to raise $145 million as part of an initial public offering scheduled for next month.

As part of the IPO, Nissin Foods said it plans to offer 268.58 million shares. The final offer price will be announced on Dec. 8, with trading expected to commence on Dec. 11.

“With a view towards embodying the group philosophy ‘Earth Food Creator,’ the Nissin Foods Group has been focusing on growth and expansion of its overseas business (including those conducted in China),” the company said. “The purpose of the proposed listing of Hong Kong Nissin is, from the viewpoint of anticipating sustained growth in Chinese market, to enable Hong Kong Nissin to establish closer relationship with local market, to pursue strategic partnerships as well as to undertake acquisitions and expansion of China business through its listing, to strengthen further its brand recognition and awareness, and to extend its sales and distribution network.”

Nissin
Nissin offers products in Hong Kong under the Cup Noodles, Demae Iccho, Doll Instant Noodle, Doll Dim Sum, and Fuku brands.
 
Once the IPO is completed, Nissin Foods Holdings said its stake in Nissin Foods Co. will be reduced to 73.89% from 100%.

In the IPO document, Nissin said it plans to use approximately 45% of the proceeds from the offering to upgrade and expand its production plants and facilities, 10% to expand its sales and distribution network in China, 5% to enhance research and development capabilities, 30% to establish strategic partnerships and/or acquisitions to further diversify its instant noodle, frozen food and other product offerings, and 10% to fund working capital.

Citing Frost & Sullivan data, Nissin said it has been the largest instant noodle company in Hong Kong for the past five years, accounting for approximately 65.3% of total instant noodle retail sales in 2016. The company offers products under five key brands: Cup Noodles, Demae Iccho, Doll Instant Noodle, Doll Dim Sum, and Fuku. As of June 30, the company offered more than 540 stock-keeping units of food products and more than 230 different flavors of instant noodles in Hong Kong, China and overseas.