The Siemens Healthineers division of German industrial conglomerate Siemens is moving closer to an initial public offering (IPO) that will mark the launch of the business as an independent company, according to published reports.
Siemens in April plans to invite investment banks to make their bids for participation in the IPO, according to a report published by Reuters on January 25. The article said that Goldman Sachs will probably be one of the lead coordinators of the IPO.
Siemens in November 2016 announced that it plans to spin off Siemens Healthineers as an independent, publicly traded company in an effort to give the business more focus and flexibility in pursuing growth. The healthcare business for its most recent full financial year reported revenue of $14.72 billion (13.535 billion euros) and operating profit of $2.53 billion (2.325 billion euros).
The Reuters article proposed that the IPO would give Siemens Healthineers money for either "organic" or "inorganic" investment in its businesses. It noted that while Siemens is a leader in diagnostic imaging, the company "needs to adapt fast to boost its exposure to growth segments." Such segments could include molecular diagnostics, advanced therapies, and hospital services.
