Siemens plans to publicly list its subsidiary lighting compay Osram GmbH in the fall of 2011 as part of a major corporate restructuring.
Siemens said it intends to retain a minority stake in Osram, which has about 40,000 employees worldwide. Siemens did not say how much money it hopes to raise in the IPO. The Wall Street Journal says the IPO could value the company at EUR 6 billion or more.
Siemens also announced its intention to create a new Infrastructure and Cities division to take advantage of growth in big cities in the developed and emerging worlds.
Osram currently generates about 20% of its total revenue with LED-based products, while energy-efficient products account for 70% of Osram revenue, Siemens said.
The company is No. 1 worldwide in automotive lamps and motor vehicle LEDs. Osram also has a leading position in the market for electronic ballasts for lamps. And in February, Osram announced its plans to acquire Siteco, which is active in the market for luminaires and lighting solutions.
"With the IPO, we want to give Osram complete entrepreneurial freedom to comprehensively further develop its leading competitive position in a lighting market being swept by technological changes," said Siemens President and CEO Peter Löscher.
Wolfgang Dehen, currently a member of Siemens’ Managing Board and CEO of the Energy Sector, has been appointed to head the Osram Executive Board, effective April 1, 2011. Following the transformation of Osram GmbH into a publicly listed company, he will serve as its President and CEO.
Driven by semiconductor-based technologies like LEDs (light-emitting diodes) and OLEDs (organic lightemitting diodes), the total lighting market is expected to grow to around EUR 65 billion by 2016.