GE plans IPO for Czech banking business

[NEW YORK] General Electric plans to float shares of its Czech Republic retail banking business on the Prague Stock Exchange in the biggest IPO in central Europe since 2011, GE announced Monday.

GE Capital plans to sell a majority of shares in GE Money Bank to institutional investors. The move is part of GE's efforts to streamline GE Capital and focus on industrial operations, the company said.

The offering is expected to value the company at just over two billion euros (S$3.07 billion), according to analysts.

GE Capital expects to hold a "significant" minority stake in the company for at least six months before GE Money Bank shifts to "full independence".

Headquartered in Prague, GE Money Bank operates through 229 retail branches and 629 ATMs. The bank served about 1.2 million retail and commercial customers at the end of December 2015, about 11 per cent of the Czech population.

AFP