GE stock was up Wednesday on reports about its plans to spin off its healthcare business.
According to these reports, General Electric (NYSE:GE) is looking to create a healthcare spinoff business with an IPO. This would create a new major player in the business. GE Healthcare already brought in about $19 billion in revenue in 2017 and around $3.4 billion in profit.
The spinoff of GE Healthcare into its own business is something we’ve already known since June. However, it is only now that more details about the plans are starting to leak. This includes that the company is aiming for an IPO in mid-2019.
These recent reports that have GE stock soaring also drop some names of who is helping with the GE Healthcare IPO. The reports say that JPMorgan Chase, Goldman Sachs, Bank of America, Citigroup and Morgan Stanley are all involved in the IPO.
“As we announced in June, GE intends to separate its healthcare business, but we have not confirmed the form or timing,” a GE spokesperson told CNBC. “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.”
How exactly the GE spinoff will take place is still unknown. However, we do have some idea from leaders of the company. Former GE CEO John Flannery wanted to sell off 20% of GE Healthcare and spin off the rest to holders of GE stock. His replacement, Larry Culp, has said GE may sell off even more of the business before spinning it off, reports Bloomberg.
GE stock was up 6% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.