Siemens Healthineers AG, a medical imaging design and development lab, experienced a 6.8 percent growth in stock prices after Siemens raised 4.2 billion Euros (or $5.2 billion dollars) during their initial public offering. It was Germany’s second biggest IPO in the last 18 years.
Siemens sold 15 percent of the division, or 150 million shares at 28 euros each, with estimated proceeds ranging between 3.9 billion and 4.65 billion euros, according to Reuters. About 10 percent of the investors are retail companies: 30 percent are German, 26 percent are U.K.-based, and 21 percent are from the U.S. “We expect the business to capitalize on its strengths even more effectively after the listing,” said Michael Sen, member of Siemens’s managing board.
Although parent Siemens AG intends to remain a long-standing shareholder, the IPO was a move to break up the company. They’ll be combining their Wind Power and Energy division with a Spanish company, and Siemens CEO Joe Kaeser plans to merge its rail solutions and automation department with a French rival company. Going public was expected to raise 35 billion euros for Healthineers, but the listing only generated 31 billion. According to Bloomberg, value decreased due to market volatility and murky results of Atellica, its new line of laboratory and software products.