UPDATE 2-Siemens Healthineers IPO likely to price at 28 euros per share – sources


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MUNICH (Reuters) – Shares in Siemens Healthineers (SHLG.DE) are likely to be priced at 28 euros ($34.64) in its initial public offering, on the lower side of a guidance range of 26 to 31 euros, two sources close the deal said.

FILE PHOTO – Siemens Healthineers headquarters is pictured in Erlangen near Nuremberg, Germany, October 7, 2016. REUTERS/Michaela Rehle

“Orders below 28 euros a share risk missing out,” said one of the people, who spoke on condition of anonymity.

That would value the medical imaging and diagnostics business at about 28 billion euros ($35 billion).

As a result, Siemens (SIEGn.DE), which will sell a 15 percent stake, is in the frame to reap 4.2 billion euros in proceeds.

The offer period is due to run through Thursday, when a final price is expected to be set. The shares are set to start trading on the Frankfurt Stock Exchange on Friday.

Siemens announced plans to float Healthineers, the world’s largest maker of medical imaging gear, on the exchange last month in what will be one of Germany’s biggest listings in recent years.

“The feedback has not been overwhelming,” said a person at one of several banks that are organizing the transaction.

Investors have cited a slight deterioration of market conditions and uncertainty over the market launch of “Atellica”, an automated lab diagnostics platform, which Healthineers has said would catch up quickly with established competitors.

The machine for high-throughput testing of blood and urine and samples has yet to show mass market viability against rival products by Roche (ROG.S), Abbott (ABT.N) or Danaher’s (DHR.N) Beckman Coulter.

Siemens this month set the price range for the planned IPO, valuing the division at up to 31 billion euros, already lower than was expected at the time.

Reporting by Alexander Huebner, Ludwig Burger and Arno Schuetze; Editing by Jason Neely and Mark Potter


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