Magnum Ice Cream, the global ice-cream brand owned by Unilever, provided sweet cheer to Europe’s spin-off cycle this week as it debuted on public markets.

The listing continues a broader shift among large-cap European corporates to carve out focused consumer brands to unlock value, streamline portfolios and simplify equity stories for investors.

Magnum, which reported 2024 revenues of EUR 7.9bn (around USD 8.4bn), listed on 8 December at EUR 12.80 per share on Euronext Amsterdam, its primary venue, alongside secondary listings on the London Stock Exchange and the New York Stock Exchange.

The pricing implied a day-one market capitalisation of EUR 7.8bn. The stock has endured a little volatility, melting somewhat to GBP 10.81 yesterday (9 December) before solidifying to GBP 11.11 this afternoon.

Magnum arrived on the market at a discount to global branded-consumer peers, with the valuation broadly supported in trading, according to an ECM banker.

Unilever being a FTSE 100 constituent, the spin-off involved flowback management from passive funds with mandates to exposed to the index. In that context, education and pricing efforts targeted a reasonable valuation, the banker said. “Investors know the brand, but they still want clarity on margins and standalone execution,” he nonetheless cautioned.

The transaction comes at a moment when European spin-off activity continues to be active. Year-to-date 2025 spin-off volumes have reached USD 22.1bn, up from USD 20.9bn over the same period last year.

While that remains far short of the 2019 peak of USD 73.6bn, a spike fuelled by large industrial and telecom conglomerates unwinding sprawling portfolios, the current run rate reflects a material pick-up in corporate separation activity.

Investors’ appetite for cleaner equity stories underpins much of the deal activity.

“The market likes spin-offs at the moment,” a second ECM banker said. “They simplify the story. Investors want pure-plays and clearer visibility on value. You strip out the conglomerate discount, let management focus on core assets, and tidy up the equity narrative.”

Performance year-to-date is particularly notable given some tough 2024 comparable transactions, including Liberty Global’s EUR 8.8bn (about USD 9.4bn) demerger of Sunrise Communications in November last year.

This year’s volumes have been supported by several mid-to-large separations.

Thyssenkrupp completed the EUR 5bn (c. USD 5.5bn) spin-off of Thyssenkrupp Marine Systems in October. Continental listed its drivetrain and software unit Aumovio in September in a transaction valuing the business at around EUR 4bn (c. USD 4.3bn). Embracer Group completed the listing of Asmodee Group, valued at EUR 2.1bn (c. USD 2.25bn), in February.

Across the wider market, consumer, automotive, industrials, defence and media have emerged as the most active sectors for portfolio separation.

Automotive remains the standout, with carmaking giants carving out EV, software and component operations to highlight growth assets and secure ring-fenced capital for technology investment.

“The risk is the automotive cycle – margin pressure, supply-chain inflation, all of it,” a third ECM banker said. “Timing really matters. But carving out EV or software units gives investors a purer exposure and helps the parent manage capital intensity.”

Despite the healthy momentum, bankers caution that the forward pipeline is thinning. FY24 volumes last year reached USD 30.4bn but the remaining 2025 pipeline does not bode well for matching that haul. Into 2026, potential spin-offs of BT’s Openreach and SKF’s Automotive division remain on watchlists, but timing is uncertain and dependent on market conditions as well as internal strategic debates.

There is, however, a clear shift in the rationale behind recent corporate separations. As the third ECM banker said: “there’s been a move away from defensive spin-offs and towards using separations to re-rate the core. In a higher interest-rate environment, people want clarity – and spin-offs give them that.”