Siemens plans to list its 40 billion euro ($48 billion) healthcare unit Healthineers in March, two people close to the matter said, as the group hopes to execute the deal while market conditions are favorable.
The Frankfurt listing of a minority stake in Healthineers, which makes X-ray and MRI machines, is expected to be Germany’s biggest IPO this year. It is likely to be announced in the first few days of March, with an initial public offering taking place four weeks later, the sources said.
Siemens, which is expected to sell 15-25% of Healthineers, declined to comment.
If markets hold, Healthineers will be one of a number of blockbuster flotations in Germany this year.
Healthineers’ listing is aimed at enabling it to raise its own funds for takeovers and investments in the healthcare sector as well as crystallizing its standalone value, removing some of the “conglomerate discount” that weighs on Siemens’ valuation.
Siemens aims to discuss its plans for Healthineers at a capital markets day on Jan. 16. That will be followed by a separate presentation to analysts tasked with calculating a company valuation several weeks ahead of the official announcement of the IPO.
Chief Executive Joe Kaeser said late last year that Siemens was testing the appetite of sovereign wealth funds ahead of Healthineers IPO, possibly to secure anchor investors for the flotation.