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Siemens Plans Healthcare Unit IPO In H1 2018 - Quick Facts

German conglomerate Siemens AG (SIEGY.PK,SMAWF) announced Monday that it plans an initial public offering (IPO) of existing shares in its healthcare unit, Siemens Healthineers AG. However, Siemens will retain a majority stake in Siemens Healthineers in the long term.

The IPO will consist of a secondary offering of shares from the existing holdings of Siemens. The company targets a free float of a meaningful minority share, which will create a liquid market for the Siemens Healthineers shares.

The offering expected to be completed in the first half of calendar year 2018, subject to capital market conditions. The company plans a separate listing for the healthcare unit on the regulated market or prime standard of the Frankfurt Stock Exchange.

The healthcare unit has generated revenues of 13.8 billion euros in fiscal year 2017 from across geographies, with more than 55 percent being recurring. It also reported an adjusted profit of 2.5 billion euros, with an adjusted profit margin of about 18 percent.

The company said Siemens Healthineers' core markets are estimated at more than 50 billion euros per year and expected to grow from 2016 to 2021 by three to five percent on average annually.

Deutsche Bank, Goldman Sachs International and J.P. Morgan are acting as the Joint Global Coordinators in the planned IPO. BNP PARIBAS, BofA Merrill Lynch, Citigroup and UBS Investment Bank are acting as the Joint Bookrunners. Meanwhile, Berenberg, COMMERZBANK, HSBC, Jefferies, Nordea, RBC and UniCredit have been appointed as Co-Lead Managers for the offering.

by RTTNews Staff Writer

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