GE conglomerate's health care subsidiary will go public
GE HealthCare Technologies is now listed on Nasdaq under the ticker symbol GEHC, while GE remains on the New York Stock Exchange (NYSE), New York's other major stock exchange.
GEHC stock rose 4.91% to $58.75. It was valued at about $21 billion. It was valued at $31 billion before going public, according to the Wall Street Journal.
Holders of the 100-year-old company received one GE HeatlhCare share for every three GE shares. The company, formerly known as General Electric, will retain a 19.9 percent stake in its former subsidiary.
This GE subsidiary specializes in medical equipment for diagnosis, screening and treatment, as well as hospital information technology management.
It has an estimated annual turnover of about $18 billion.
The GE HealthCare spin-off is the first step in a process announced in November 2021 that will create three separate listed companies from the existing conglomerate.
In early 2024, GE plans to launch GE Vernova, which combines energy assets with a focus on renewable energy, and GE Aerospace, which specializes in aircraft engines.
"The successful separation of GE HealthCare marks a pivotal moment in our transformation into three independent companies focused on growth sectors," commented GE CEO Lawrence Culp, quoted in a statement released Wednesday.
The project's completion will mark the end of a great name in American industry created more than 130 years ago.
GE has been restructuring for several years, getting rid of a number of assets and, in particular, leaving the transportation industry.
Between 2015 and 2021, its workforce was cut in half, from 333,000 to 168,000 at the end of 2021.