Is General Electric Giving Up on GEHC Stock?


  • GE HealthCare Technologies (GEHC) is slipping on a secondary offering.
  • This comes from General Electric (GE) selling part of its stake in the company.
  • GE is selling 25 million shares, which represents an over $2 billion stake in GEHC.
GEHC Stock - Is General Electric Giving Up on GEHC Stock?

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Investors are wondering what General Electric’s (NYSE:GE) plans are for GE HealthCare Technologies (NASDAQ:GEHC) after announcing a stock sale.

Earlier this week, General Electric announced a sale of 25 million shares of GEHC stock. The total value of this sale is over $2 billion and GE HealthCare Technologies won’t see any proceeds from the secondary offering.

Investors will note that General Electric is also exchanging 28.75 million shares of GEHC stock for debt currently held by associates of Morgan Stanley (NYSE:MS). The offering also includes a 30-day option for additional stock purchases from underwriters. Evercore ISI, Morgan Stanley, BofA Securities, Citigroup and Goldman Sachs & Co LLC are underwriters for the offering.

What This Means for GEHC Stock

Investors have concerns about the latest GEHC stock share sale. Some are seeing it as General Electric losing faith in the spinoff. However, the company does appear to be retaining some of its investment in GE HealthCare Technologies.

When GE HealthCare Technologies went public, General Electric retained a 19.9% stake in the company. Considering the outstanding shares last reported by the company was 454.68 million units, today’s offering would still see GE hold a large stake in GEHC.

GEHC stock is down 2.2% while GE stock is up 1.4% as of Wednesday morning.

Investors looking for even more of the latest stock market news will want to keep reading!

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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