Europe is getting its biggest IPO in years

Is now the time to buy new shares? One of Europe's biggest companies certainly hopes so.German conglomerate Si...

Posted: Feb 20, 2018 3:45 AM
Updated: Feb 20, 2018 3:45 AM

Is now the time to buy new shares? One of Europe's biggest companies certainly hopes so.

German conglomerate Siemens is set to spin off its health care division -- Siemens Healthineers -- which specializes in imaging and diagnostic equipment used in hospitals.

The unusually named company -- which merges "health" and "engineers" -- is expected to be valued between $40 billion to $50 billion. It has over 47,000 employees and annual revenue close to -14 billion ($17.4 billion).

Siemens said Monday that it plans to list Healthineers on the Frankfurt Stock Exchange in the first half of the year. It will retain a majority stake.

Martin Steinbach, a partner and head of IPO services at EY said that "general IPO sentiment is quite good" as global stock markets recover from a bout of volatility.

"These type of mega transactions are also a signal for other IPO candidates," he said. "We call them icebreakers."

Daniel Cunliffe, an equity analyst at Liberum, said that going public would give Healthineers more independence and scope for potential acquisitions.

"That's really why they're doing it. Not to exit health care at all," he said. "There's a lot of consolidation in the sector."

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Cunliffe said the IPO would raise around -10 billion ($12.4 billion) if Siemens sells a stake in the neighborhood of 25%. That would make it the biggest initial public offering in Germany since Deutsche Telekom in 1996, according to Dealogic.

The last time that Europe saw a deal of its size was Rosneft's 2006 listing in London and Moscow, and Glencore's 2011 debut in London and Hong Kong.

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The continent's biggest IPO of 2017 was Italian tire maker Pirelli, which raised $2.8 billion on the Italian stock exchange.

Healthineers says it's positioned for solid growth in the years ahead as it benefits from an aging population, more business in emerging markets and an increase in chronic disease.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 314509

Reported Deaths: 7247
CountyCasesDeaths
DeSoto21626259
Hinds20359415
Harrison17934309
Rankin13634278
Jackson13447246
Madison10099217
Lee9980174
Jones8381163
Forrest7683152
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Hancock379386
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Tate334084
Pike3325105
Scott315973
Alcorn313368
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Itawamba300477
Copiah297065
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Simpson295288
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Holmes189173
Clay185454
Stone182833
Tallahatchie178841
Clarke178080
Calhoun170832
Yalobusha164338
Smith162434
Walthall133945
Greene130633
Lawrence128624
Montgomery126942
Noxubee126734
Perry126338
Amite123142
Carroll121829
Webster114532
Jefferson Davis107133
Tunica105726
Claiborne102430
Benton99525
Humphreys96733
Kemper95828
Franklin83823
Quitman80916
Choctaw76418
Wilkinson67331
Jefferson65728
Sharkey50217
Issaquena1686
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Alabama Coronavirus Cases

Cases: 532895

Reported Deaths: 11001
CountyCasesDeaths
Jefferson771431528
Mobile41089808
Madison34837505
Tuscaloosa25810454
Montgomery24355588
Shelby23730249
Baldwin21191309
Lee15892171
Calhoun14522316
Morgan14324279
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Marshall12250223
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Elmore10060205
Limestone9986151
Cullman9705194
St. Clair9702243
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DeKalb8846187
Talladega8255176
Walker7246277
Autauga6938108
Jackson6815112
Blount6694137
Colbert6310134
Coffee5524119
Dale4850111
Russell443238
Chilton4308112
Franklin426282
Covington4136118
Tallapoosa4039152
Escambia393977
Chambers3578123
Dallas3557152
Clarke351161
Marion3130101
Pike311377
Lawrence300798
Winston275673
Bibb261564
Geneva251477
Marengo249664
Pickens234761
Barbour231756
Hale223277
Butler216469
Fayette212562
Henry189044
Cherokee184745
Randolph181742
Monroe178040
Washington167639
Macon159950
Clay156857
Crenshaw152757
Cleburne149141
Lamar142935
Lowndes139053
Wilcox127130
Bullock122841
Conecuh110629
Coosa107928
Perry107826
Sumter104832
Greene92534
Choctaw61124
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