PHIA Koninklijke Philips NV

"Philips Lighting Unit IPO Could Raise More Than $950 Million -- Update," at 1102 GMT, misstated the status of Lumileds from the seventh paragraph to the end. A corrected version follows.

 
By Ian Walker 

Koninklijke Philips NV set the pricing for the initial public offering of its lighting unit on Monday, saying the spinoff could raise between EUR694 million and EUR844 million ($784.8 million to $954.5 million) for the company.

The Dutch electronics group said it wanted to sell shares in the unit at between EUR18.50 and EUR22.50, implying a market capitalization of EUR2.78 billion to EUR3.38 billion.

The final offer price is expected to be announced May 26, with unconditional trading in the shares on Euronext Amsterdam set to start May 31.

Philips is selling 37.5 million Philips Lighting shares, or 25% of the business, in the float to both institutional and retail investors. It has also offered the underwriters the opportunity to buy an extra 3.75% of the business. If these shares are taken up, the company will raise up to EUR970 million, depending on the final issue price.

Philips confirmed earlier this month that it would float the lighting business, which dates back nearly 125 years, as part of plans to trim the operation and devote more time to its more profitable and faster-growing health-care business, which competes with Siemens AG and General Electric Co.

Philips Chief Executive Frans van Houten said that as separately listed companies, Royal Philips and Philips Lighting will be better equipped to focus on innovation, entrepreneurship and long-term growth. Lighting Chief Executive Eric Rondolat said the new company will be committed to further expanding its global position in the general lighting market, driving the transition to LED and connected lighting systems and services.

The lighting business reported sales of EUR7.4 billion last year, making it one of the world's biggest lighting manufacturers. The unit comprises a declining conventional lamps operation as well as a fast-growing LED luminaires, systems and services.

The lighting business reported sales of EUR7.4 billion last year, making it one of the world's biggest lighting manufacturers.

At the end of last year Philips reached a deal to sell its business called Lumileds, which makes lighting with energy-efficient light-emitting diodes, or LEDS.

However, the sale of Lumileds, a standalone business, was terminated in January when U.S. regulators blocked the agreement on national security grounds. Philips said last month it hopes to close a new deal for Lumileds before the end of the year.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

May 16, 2016 13:38 ET (17:38 GMT)

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