GE stock rises after filing for healthcare IPO
General Electric shares are up after announcing an IPO for its healthcare division.
General Electric (GE) stock is soaring after reports of the corporation confidentially filing for an initial public offering (IPO) for its healthcare division, GE Healthcare. GE’s stock has grown by almost 10% after the news was announced.
GE rebounds after tough year
GE has had a disappointing year after disappointing third quarter (Q3) earnings. Shares had fallen to its lowest point in years after the drop in its fossil fuel division. While its gas section is down, the healthcare and life sciences sections are still profitable. GE Healthcare has earned $3.5 billion from its sales of medical equipment like MRI scanners.
GE wouldn’t directly comment on the IPO plans, but has commented in an email about spinning off its healthcare section from its other businesses.
‘As we announced in June, GE intends to separate its healthcare business, but we have not confirmed the form or timing. As an independent global healthcare business, GE healthcare will have greater flexibility to pursue future growth opportunities, react quickly to changes in the industry and invest in innovation,’ noted GE in an emailed statement.
How GE could benefit from healthcare IPO
When GE launches its healthcare IPO, it could be a very lucrative decision. The GE healthcare IPO could possibly be worth up to $70 billion, according to financial experts. The IPO is expected to debut in mid-2019.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
See an opportunity to trade?
Go long or short on more than 17,000 markets with IG.
Trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
- Forex
- Shares
- Indices
