Philips Lighting Rises on Market Debut in Amsterdam
Royal Philips launched its lighting business out into the realm of the publicly held in a public offering this morning on Amsterdam’s EuroNext stock exchange.
Cairo Stadium in Cairo, Egypt, recently commissioned a new LED lighting system from Philips Lighting. (Photo courtesy of Philips Lighting)
Royal Philips launched its lighting business out into the realm of the publicly held in a public offering this morning on Amsterdam’s EuroNext stock exchange. Initially priced at €20 per share, a valuation at the lower end of the company’s anticipated range, share values rose quickly and closed the day up 10% at €22.
The initial pricing for the public offering of a 25% stake in the world’s largest general lighting manufacturer placed the enterprise value of the business at €4.5 billion ($5 billion) including debt and an implied market capitalization of €3 billion ($3.4 billion). Philips raised €750 million ($833.5 million) in floating its historic business, part of a move to shed lighting entirely and refocus the parent company on healthcare technologies.
Eric Rondolat, Philips Lighting’s CEO, said potential investors had been attracted by the “fabulous upside in our industry in general, which is brought by connected light systems and services,” but conceded that the lighting giant needs to improve margins on its professional lighting business to stay competitive with an expanding array of global rivals.
About the Author
Doug Chandler, Senior Staff Writer
Executive Editor
Doug Chandler began writing about the electrical industry in 1992, and still finds there's never a shortage of stories to be told. So he spends his days finding them and telling them. Educationally, he's a Jayhawk with an English degree. Outside of work, he can often be found banging drums or harvesting tomatoes.
