GE Healthcare’s debut on the stock market marks the beginning of the giant’s triple split

news7f01/03/2023

1 2 minutes read

GE Healthcare's debut on the stock market marks the beginning of the giant's triple split

GE's healthcare subsidiary is the first of three separate businesses. — GE’s healthcare subsidiary is the first of three separate businesses.

General Electric’s healthcare division is ready to begin its solo flight on exchanges.

In November 2021, the industrial giant decided divided into three parts. Its healthcare unit, which includes medical technology, pharmaceutical diagnostics and digital solutions, start trading on Nasdaq with ticker GEHC tomorrow (January 4).

The healthcare unit was the first to appear. Next, in early 2024, GE plans to create a new entity by combining renewables, energy, and digital into one business.

The remaining GE will become “a company focused on aviation.” Aviation is GE’s most lucrative segment, where it not only makes money from making and selling jet engines to the likes of Boeing and Airbus, but also from running an after-sales service business. repair and maintenance.

GE Healthcare, by the numbers

31 billion USD: GE Healthcare Estimated Valuation

3: Shares held in the original corporation will give individual shareholders a share in the new medical institution

80.1%: GE Healthcare’s outstanding shares are about to be distributed

19.9%: GE’s remaining stake in healthcare spin-off

$18 billion: Annual revenue from imaging, ultrasound, patient care solutions and pharmaceutical diagnostics. Image is the biggest business, bringing in up to 9 billion dollars

1 billion: Patients GE’s health business serves each year, with 2 billion procedures across services and devices

14%: How much GE stock has fallen over the past 12 months as investors await the split

GE Healthcare’s liquidity, says CFO Helmut Zodl

“We’ll be turning around with strong liquidity—$1.8 billion in balance sheet cash and a $3.5 billion base that would really help us in the event of a crash. deceleration.” –GE Healthcare CFO Helmut Zodl speaks to good fortune in December.

GE Healthcare’s Growth Roadmap

At GE Healthcare’s investment day at Nasdaq in New York City on December 8, executives shared a blueprint for the company’s priorities:

🌐 exploit and connect data using Edison digital platform;

🤝 acquisitions, still part of the strategy seen 25 trades made hitherto;

🔬Double R&D activities.

A domino effect as GE Healthcare joins the S&P 500

At the start of trading, GE Healthcare will be included in the S&P 500, which tracks the 500 largest public companies in the US, the stock market index announced on December 28. It will replace the Vornado Realty Trust, which will switch to the S&P MidCap 400 on January 5, replacing logistics company RXO. On the same day, RXO will join the S&P SmallCap 600, marking the departure of chiropractic care company The Joint Corp.

“Vornado Realty is more representative of the mid-cap market space. RXO represents more of the small-cap market space and The Joint no longer represents the small-cap space,” the S&P press release said.