Philips Says Lighting Division IPO Could Raise More Than $950 Million

By Ian Walker 

Koninklijke Philips NV on Monday set the pricing for the initial public offering of its lighting unit, saying the spinoff could raise between EUR694 million to EUR844 million ($784.8 million to $954.5 million) for the company.

The Dutch electronics group said it wanted to sell shares in the unit at between EUR18.50 to EUR22.50 apiece, implying a market capitalization of EUR2.78 billion to EUR3.38 billion.

The final offer price is expected to be announced May 26, with unconditional trading in the shares on Euronext Amsterdam set to start May 31.

Philips confirmed earlier this month that it would float the business to focus on its health-care business. It is selling 25% of Philips Lighting in the float.

The company had also explored a sale of the business but struggled to find a buyer.

The Amsterdam-based company is separating its nearly 125-year-old lighting arm as part of a wider strategic overhaul to concentrate on its more profitable and faster growing health care business.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

May 16, 2016 03:29 ET (07:29 GMT)

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