GE Money Bank – a unit of GE Capital in the Czech Republic – said that its initial public offering (IPO) could value the banking business at CZK39.1bn (about EUR1.5bn).
The IPO is the latest in a series of moves by General Electric to retreat from finance and focus on its industrial roots, having said in 2015 it planned to sell the bulk of GE Capital within two years. Since then, GE Capital has entered into agreements for asset sales worth about USD165bn.
The Czech business, which will be renamed Moneta Money Bank, said it planned to price its offering on the Prague Stock Exchange at CZK68 to CZK85 a share, which would value the bank at CZK39.1bn at the midpoint of the expected range. GE Capital will retain a minority stake in the Czech bank.
“We are pleased to be launching our planned I.P.O. today, after a strong initial response from institutional investors,” Tomas Spurny, the chief executive of GE Money Bank, said in a news release.
The bank, based in Prague, has 229 branches and 629 A.T.M.s in the Czech Republic. It serves 1.17 million retail and commercial customers in the country. The company posted a profit of CZK4.5m in 2015.
GE Capital plans to sell 260.6 million shares in Moneta Money Bank in the offering, or about 51 per cent of the bank’s shares. Conditional trading of Moneta Money Bank is expected to begin in Prague on May 6.
Citigroup, Goldman Sachs and JPMorgan Chase are serving as joint global coordinators on the offering.