Siemens Medical successfully made its debut on the Frankfurt Stock Exchange, with shares rising nearly 4% to 29.31 euros ($35.86) per share, just above its initial offering price of 28 euros. The company's IPO was a significant event, as it issued 150 million shares, representing approximately 15% of the company's total common stock, and raised a total of 4.2 billion euros ($5.2 billion). The funds will be used for future acquisitions and strategic investments, aiming to strengthen Siemens Healthcare’s independent value and position it as a key player in the medical technology sector.
This IPO is considered one of the largest in Germany over the past two decades and ranks among the top deals in Europe this year. However, the current market valuation of Siemens Healthcare stands between 26 billion and 31 billion euros, which is lower than the original forecast of 40 billion euros. Analysts suggest that this discrepancy is largely due to market volatility and uncertainty surrounding the company's new product, Atellica.
[Image: Siemens Medical successfully listed, market value of about 26 billion - 31 billion euros]
The listing plan was first announced in 2016 as part of Siemens' broader strategy under CEO Joe Kezler to streamline and restructure the company. This move not only provides investors with an opportunity to gain exposure to the healthcare segment but also secures additional capital for business expansion. Siemens has emphasized that the separation of the medical division is a crucial step toward enabling the company to acquire innovative start-ups focused on new medical and diagnostic technologies, particularly in the U.S.
According to Siemens’ 2017 financial report, Siemens Medical was one of the most profitable segments within the group. In fiscal year 2017, the entire Siemens Group generated revenue of 83.049 billion euros and a net profit of 6.179 billion euros. Of this, Siemens Medical contributed 13.79 billion euros in revenue and 2.49 billion euros in profit, accounting for 40% of the group’s total net profit—making it the most profitable business unit. Geographically, more than half of the growth in Siemens Healthcare’s revenue came from China, while the primary driver of growth was the medical imaging and diagnostics segment.
Industry insiders believe that the launch of Siemens Healthcare will allow the company to focus more on research-intensive areas such as molecular diagnostics, positioning it for faster and more sustainable growth in the coming years.
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