General Electric has reportedly filed confidentially for an initial public offering of its health care unit – one of the most profitable sectors of the sprawling conglomerate, according to Bloomberg.
A public filing is likely to take place in the spring, the Bloomberg report said, citing people familiar with the matter. The company is apparently working with Goldman Sachs Group, Bank of America, Citigroup, JPMorgan Chase & Co. and Morgan Stanley on the planned listing.
GE shares jumped in premarket trading on Wednesday.
|GE||GENERAL ELECTRIC CO.||85.26||-0.71||-0.83%|
A new GE health care company would be one of the biggest pharma companies in the world. Bloomberg estimated it would be valued between $65 billion and $70 billion.
In June, GE CEO John Flannery planned to spin off a large swath of the health care unit while selling 20 percent of that unit. He was ousted, however, in October and replaced by former Danaher CEO Larry Culp, also a GE board member.
Last year, GE Healthcare generated $19 billion in revenue, earning $3.5 billion. It specializes in equipment like MRI scanners and mobile diagnostic machines.