Philips lighting unit IPO could raise as much as 970m euros

[AMSTERDAM] Royal Philips NV is seeking to raise as much as 970 million euros (S$1.5 billion) from the initial public offering of its lighting unit as it pushes ahead with a plan to list on Amsterdam's stock exchange after a private sale didn't result in a buyer.

Philips is planning to sell 37.5 million shares at a range of between 18.50 euros and 22.50 euros per share, the Amsterdam- based company said in a statement on Monday. That values the lighting business at as much as 3.38 billion euros. A listing could come in effect as early as May 27, the company said.

Separating the lighting business, which dates back to 1891 when Frederik Philips and his son started selling incandescent lamps, will allow the company to concentrate on the global health-care market with equipment including scanners and consumer goods such as shavers and toothbrushes.

Philips has attracted interest in the division from companies including Blackstone and Onex Corp, a group led by Apollo, as well as Chinese investor GO Scale Capital, according to people familiar with the matter, who asked not to be named because the process was not public.

On the basis of the offer price range, Philips will raise as much as 844 million euros from the IPO, rising to 970 million euros assuming full exercise of an over allotment option. The lighting division reported 547 million euros in profit in 2015 and had 7.47 billion euros in sales.

Philips shares closed at 23.01 euros in Amsterdam on Friday, valuing the company at about 21.4 billion euros.

BLOOMBERG