Siemens Healthineers IPO: Europe’s Biggest Upcoming IPO in Years

Will this be the perfect time to purchase new shares? One of the biggest companies in Europe definitely thinks that this is the right time. German Conglomerate Siemens (SIEGY) reported on Monday that it is intending to trade its shares in its healthcare department (Siemens Healthineers) in the first six months this year. It will as well maintain a majority interest.

German Conglomerate Siemens (SIEGY) plans healthcare unit IPO

The uncommon named company which brings together health and engineers particularize in diagnostic and imaging apparatus utilized in hospitals. The IPO on the Frankfurt Stock Exchange is anticipated to value the company between $40 billion to $50 billion. It has over 47,000 employees and yearly returns are approximately €14 billion ($17.4 billion).

“General IPO point of view is quite great”, reported Martin Steinbach, a partner and head of IPO services at EY, as global stock markets recuperate from a period of volatility.

“These kinds of huge deals are also a sign of other IPO candidates and we call them icebreakers,” he said.

Daniel Cunliffe, an equity analyst at Liberum, reported that publicizing would provide Healthineers with more freedom and an opportunity for potential buying.

“That is really why they are doing it. Not to exit health care at all,” he said. “There is a lot of consolidation in the sector.”

Cunliffe said that the IPO would go up to approximately €10 billion ($12.4 billion) if Siemens trades a share in the neighborhood of 25%. That would make it be considered the greatest Initial Public Offering in Germany since Deutsche Telekom (DTEGY) in 1996, as stated by Dealogic.

The most recent time that Europe had a transaction of this size was Rosneft’s 2006 listing in London and Moscow, and Glencore’s (GLCNF) 2011 debut in London and Hong Kong.

The continent’s greatest IPO of 2017 was Italian tire maker Pirelli, which grew up by $2.8 billion on the Italian stock exchange.

Healthineers reports that it is set for uniform growth in the years to come as it is important from an aging population, more deals in markets which are coming up and growth in chronic disease.