Philips Lighting Shares Glow On Debut

(RTTNews) - Philips Lighting, the splinter group of Dutch consumer electronics giant Philips (PHG), saw its shares rally around 8.50 percent on its debut on Friday at the Amsterdam stock exchange.

The shares are currently at 21.70 euros, above its set pricing of 20 euros per share.

Philips raised around 750 million euros in the initial public offering of its lighting business. The 37.5 million share IPO was planned after an unsuccessful bid to close a private sale of the whole business.

While setting the IPO price, Royal Philips Chief Executive Officer Frans van Houten said in the statement, "I am pleased with the response of investors towards Philips Lighting and the successful pricing of the IPO. This strategic milestone will allow Royal Philips to focus on the fast-growing health technology market."

The offer price of 20 euros per share implied a market capitalization of 3 billion euros for the Lighting division as a standalone company, or an enterprise value of 4.5 billion euros including debt, the statement read. The offer price was slightly below the mid-point of the 18.50 euros to 22.50 euros range set earlier.

Shares began trading on the Euronext exchange in Amsterdam on Friday under the symbol "LIGHT."

Following closing of the offering and assuming full exercise of the over-allotment option, Philips will retain 71.25% of the Shares.

The IPO announced on May 3rd consisted offering of existing shares only held by Philips, the current sole shareholder of Philips Lighting.

The lighting division, which dates back to 1891, reported 547 million euros in profit in 2015 and had 7.47 billion euros in sales.

Philips Lighting, which produces conventional lights and light emitting diodes, or LEDs, competes with Osram Licht AG, spun off from Siemens AG, and General Electric Co.

After the IPO Philips Lighting reportedly will be the world's largest independent lighting maker.

Closing and settlement of the offering and the start of unconditional trading in the Philips Lighting shares is expected to take place on May 31.