Siemens (NYSE:SI) said this week that it’s planning to list its healthcare business on the Frankfurt Stock Exchange during the first half of 2018 in an initial public offering that could fetch nearly $12 billion.
Siemens Healthineers, the German industrial conglomerate’s largest and most profitable division, is worth roughly $47.49 billion (€40 billion). The company plans to list 15% to 25% of Healthineer’s shares, for a range of $7.12 billion to $11.87 billion (€6.0 billion to €10.0 billion).
Although Healthineers chairman Michael Sen recently emphasized the draw of a Wall Street listing, CFO Ralf Thomas said last month equated the value of staging a flotation in New York City and a Frankfurt listing, according to news reports. Brexit, the pending secession from the European Union by the United Kingdom, could also have played a role in ruling London out, according to the report, and Siemens may be looking to curry favor with Germany’s labor unions.
“For Siemens Healthineers, the public listing is the next logical step and the foundation for expanding our strong position as a leading global supplier of healthcare technology,” Sen said in prepared remarks. “Frankfurt is one of the world’s largest trading centers for securities and its importance will continue to increase due to Brexit. As a highly liquid trading venue, Frankfurt is attractive for investors from around the world. The public listing will give Siemens Healthineers entrepreneurial flexibility and access to the capital market. The goal is to grow sustainably and profitably while actively shaping the paradigm shift in the healthcare industry.”
“Our preparations for the public listing are completely on schedule. The Strategy 2025 concept and the management team are in place. The legal prerequisites have largely been fulfilled. Deutsche Bank, Goldman Sachs International and J.P. Morgan have been engaged as global coordinators, and BNP PARIBAS, BofA Merrill Lynch, Citigroup and UBS Investment Bank as further syndicate banks,” Thomas added.
($1 = €0.842235)