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5/27/2016, 11:16 AM (Source: TeleTrader)
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Philips Lighting shares shine after IPO

Philips Lighting shares rose over 2.5% on Friday, implying the company value over $3 billion, which was the main goal of the initial public offering (IPO) on Friday.

Philips Lighting offered 37.5 million existing shares of Koninlijke Philips NV for conditional trade until May 31. Philips Lighting was a fully-owned division of Koninlijke Philips NV, the industrial conglomerate based in Amsterdam, the Netherlands, which will for the moment at least, hold 71.25% stake in the newly listed company.

There will be little change in the business, however, as the flagship Koninlijke Philips (or: Royal Philips) will keep its diagnostic imaging and home care business.

"This strategic milestone will allow Royal Philips to focus on the fast‐growing health technology market. I am convinced that both Royal Philips and Philips Lighting will thrive as separate, listed companies, each focused on long‐term value‐creating growth opportunities," explained Frans van Houten, chief executive officer of Royal Philips.

Philips Lighting has already established its name as the global leader in lighting products, and related systems and services.

"I am excited about the level of interest from both institutional and retail investors, which underpins our belief that our investment case is solid, supported by strong cash flow generation. We welcome our new shareholders and thank them for their trust in our strategy. With their support, we look forward to further expanding our global market‐leading position by driving the transition to LED and connected lighting systems and services," said Eric Rondolat, CEO of Philips Lighting.

The IPO price at Euronext Amsterdam was €20.00 per share, and by 10:52 a.m. CET price rose 2.68% to €21.64.

Shares of Royal Philips NV rose 0.42% to €24.14, gaining 5.06% for the week.

 

Image: EPA / ANP / Sander Koning

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