It would probably be one of the largest IPOs since the telecom: The medical technology subsidiary Healthineers of Siemens wants in 2018 to the Frankfurt Stock Exchange. Analysts see good chances for inclusion in the Dax.
The Frankfurt Stock Exchange is expected next year, the largest IPO since the German Telekom 20 years ago in the house: The industrial group Siemens wants to bring its medical technology subsidiary Healthineers in the German financial metropolis and not in New York on the stock market. “Frankfurt is one of the world’s largest securities trading centers, whose importance will continue to increase in the light of Brexit ,” said Siemens CEO Michael Sen.
Works Council and IG Metall reacted relieved that the IPO was planned in Frankfurt . Sen’s Senator for Healthineers had also flirted with New York. There most of the competitors are listed in medical technology. However, according to investment bankers, fewer and fewer speak for an IPO abroad, because investors are active on all large, liquid stock exchanges. In the US, German companies are particularly frightened by the strict stock exchange regulations. London was quickly out of the race due to the planned Brexit.
Analysts estimate the value of the division at 40 billion euros and see good chances for inclusion in the leading index Dax . With 47,000 employees worldwide, the division generates annual sales of 14 billion euros, most of them in the USA.
New capital and excellent prospects
Siemens sees little synergy with its core industrial business in its high-turnover and profitable business with computed tomography and other medical technology. According to Sen, the IPO division will give them entrepreneurial flexibility and access to the capital market for profitable growth. According to his statements to date, the electronics company will “keep the lead in the medium term”.
Siemens Healthcare Works Council Director Dorothea Simon said: “This decision is good news for the approximately 12,000 Healthineers employees in Germany.” Your company will get new capital and excellent prospects in a fast-growing future market. Co-determination, tariff and working conditions were maintained.
Supervisory Board member Reinhard Hahn emphasized: “On Wall Street , employee participation would have been tipped off.” The IPO of the medical division show that economic decisions and the interests of the employees “can be reconciled perfectly – if the management is open for a constructive exchange,” said the trade unionist in view of the dispute over the reduction of 6900 jobs in the Power plant division .
The IPO is planned for the first half of 2018. At the end of March, the Group intends to be ready to take the next opportunity.
On the one hand, Siemens aims to bring the value of its most profitable division to the attention of investors with its IPO. On the other hand, it should be given the opportunity to pay for acquisitions with own shares.