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.
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