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GE moves closer to IPO of GE Capital

  • GE is expected to file for the IPO of its consumer finance unit - GE Capital - in the next two months, reports the FT, and has hired Goldman and JPMorgan to lead the push.
  • The unit could be valued at more than $20B and the sale of about 20% means a $4B listing and the largest IPO since Facebook raised $16.1B in May 2012. The remainder of the unit would be spun off to GE shareholders in 2015.
  • Back in the day, cynics could call GE a bank that happened to sell aircraft parts and such, but no more. The exit from consumer finance would be the completion of a post-crisis restructuring plan to return to the company's manufacturing roots.
  • The GE Capital sale would be the latest in a fast line of consumer finance offerings, including the IPOs of Santander Consumer U.S. and Springleaf Financial. "[It's] a good time to exit this business," said GE Capital chief Keith Sherin recently. "The capital markets are pretty strong."
Comments (21)
  • fuzzymc
    , contributor
    Comments (176) | Send Message
     
    Bought at 24 sold at 28 said I would buy it back at 25 everyone said oh it will never go back to 25 this year! Guess what?
    31 Jan 2014, 02:12 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    I been buying for years and always made a profit on GE, including the reinvesting of dividends. It consistently increased over time.
    1 Feb 2014, 03:09 PM Reply Like
  • buddyboy52
    , contributor
    Comments (14) | Send Message
     
    Bragging or complaining?
    31 Jan 2014, 02:43 PM Reply Like
  • minwyhe
    , contributor
    Comments (103) | Send Message
     
    Why aren't the shareholders who have lived thru the fiasco of this GE entity which brought the share price down below 10 at one point not getting some shares in this spin off?
    31 Jan 2014, 02:58 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    The shareholders will receive some GE capital, nothing official besides 80% going to be distributed to shareholders.
    1 Feb 2014, 03:08 PM Reply Like
  • fanebrp
    , contributor
    Comments (278) | Send Message
     
    That's cause Jeff Melt never thought of that. He only thinks of lunches in DC.
    31 Jan 2014, 04:18 PM Reply Like
  • Jcflash
    , contributor
    Comments (31) | Send Message
     
    Is it going to be spun off to shareholders or like Zoetis and Pfizer a choice of keeping GE or exchanging your GE shares for shares of GE Capital?
    31 Jan 2014, 04:22 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    They are just going to give a certain amount per share, there isn't official amount per share. Above shows they are selling 20% of it and the rest would go to shareholders.
    1 Feb 2014, 03:06 PM Reply Like
  • elkarlo
    , contributor
    Comments (430) | Send Message
     
    I wonder what kind of shares we will get for each of our GE share?

     

    Also, i bet we won't get a dividend from it any time soon. Despite it being a well established company.
    31 Jan 2014, 05:42 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11520) | Send Message
     
    Yay buy it back up at $25 so you can lose your shirt on the next market meltdown. This is so classic Wall Street it is almost laughable. And when they lose everyone will laugh and say, what stupid idiot gets burned by the exact same game as before?

     

    Don't buy the IPO unless you want to be the butt of every joke until you die. Knowing Wall Street it will IPO a week before another recession stock market collapse. Their IPO may be the strongest sign of a market top yet.
    31 Jan 2014, 10:48 PM Reply Like
  • Willow Street Investments
    , contributor
    Comments (1195) | Send Message
     
    Stay classy.
    1 Feb 2014, 08:49 AM Reply Like
  • mydogmoe
    , contributor
    Comments (660) | Send Message
     
    You don't seriously believe GE is the only stock you would lose your shirt on with a market meltdown. Your stomach is a little to weak for this market...
    1 Feb 2014, 04:58 PM Reply Like
  • rubel
    , contributor
    Comments (577) | Send Message
     
    ge will not see 30$ a share for the forseeable future! a "spinoff"????!!!!!!! since when does a shareholder have to exchange ownership for ownership. prior to the "spinoff" a shareowner owns those assets, when a division is spun off the present shareowners get an equity position in the new free standing corporation, such as when general mills spun off darden restaurants you received one share of darden for each share you owned of general mills, no exchange etc.
    this seems like more of jeff immelts' parlor games! soooooooooooo by turning in shares of ge to receive shares of ge capital, immelt gets a twofer.....reducing share count, rid ge of ge capital, and increase eps, by share reduction.
    no matter what happens here, ge will not prosper with immelt and its board.
    shareholders have a duty to vote against the board, immelt and vote for splitting the ceo/chairman and term limits on board members!
    1 Feb 2014, 10:20 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (1195) | Send Message
     
    You are so wrong I dont know where to begin. Anytime I have owned a company where there was a spinoff with an optional share exchange and reduced share count I have done very well (ie, BMY and PFE). You are wrong and GE will hit 30 this year barring a market crash. GE insiders just bought a bunch of shares. Look it up.
    If GE split up into several companies as it should, this company would be worth 80-90 dollars a share.
    1 Feb 2014, 10:49 AM Reply Like
  • doc47
    , contributor
    Comments (1287) | Send Message
     
    You are wrong about it being a 100% policy. I owned McDonalds when they spun off Chipolte. Shareholders got nothing!
    2 Feb 2014, 02:03 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    What will the Shareholders receive per share?
    1 Feb 2014, 02:53 PM Reply Like
  • LeahyInvestor
    , contributor
    Comments (99) | Send Message
     
    I always liked that GE was never over inflated by hype. Made it really easy to pick purchase prices and forecast. Verses Apple, Tesla, Amazon, although could be good businesses, the stock hype is insane. Often some stocks are under judged and over judged. If the world has any growth energy is restrictive. Even if they drill more oil wells, they have to ship it. Reacting time can take forever. A competing resource would be Natural Gas, GE has addressed various Energy areas, including Natural Gas. People seem to ignore CNG or LNG, just because it is in Semi, big trucks, buses, which each unit burns a lot of fuel. For the world to grow, energy is most important. Commercial and Government fleets can be big users of fuel and they are being focused on Natural Gas. Producers will need more equipment and oil drillers need more tech to get oil out. GE has been getting in this area, from mini-LNG plants, to drilling solutions.
    1 Feb 2014, 03:02 PM Reply Like
  • rubel
    , contributor
    Comments (577) | Send Message
     
    hello choi, i must differ with you.....if you are an owner of assets in a corporation and the board decides to split the company into different freestanding companies, you recieve shares in those companies without exchanging. like i said look at ge/darden split. you might not receive share for share it might be for every one shre you own in the parent company you recieve 1/2 a share in the new company. those assets prior to de-vesting belong to the present shareowners. its basic math! i have made a fortune in the market, and i consider myself a professional investor.
    i have also been involved in a buy out such as when brk bought out bni. i opted for shares of brk in exchange for my shares of bni. brk-b was split so more shares could be exchanged for bni. so now i became a shareowner in brk-b my equity position was the same ratio. i also received a small amount of cash due to fractional shares etc.
    so i still want to know why you think it is correct to turn in ownership of ge for ge capital when you as a present ge common owner have ownership in ge capital. also if ge sells part of ge capital in an ipo, the cash recieved for the sale of ge capital shares should be distributed to ge common holders since their assets have been sold....like when a company is in liquidation.
    regarding ge hitting 30$ ge has not even kept up with its peers, it has STRUGGLED to get to 25$. when ge reports earnings every quarter the share price drops, insiders buying ge will never effect the share price, since their purchase is so small considering the share count outstanding.
    check all of these companies........ugi, wtr, nsc, unp, shw, jci,ccl, low,xom,etp,gis,met,gps. not just 52 week highs all time highs. i own these in one portfolio worth 215k all hit record highs, i also own ge in this portfolio as well as in another portfolio and ge has flip,flopped in the same range for two years.
    2 Feb 2014, 11:10 AM Reply Like
  • Willow Street Investments
    , contributor
    Comments (1195) | Send Message
     
    Wall Street considers GE a bank....that is why they are getting rid of the credit card business. The finance part of GE is hurting the performance of GE's stock.

     

    I wouldnt want shares in the spin off...I would only want the industrial part of GE.
    2 Feb 2014, 12:16 PM Reply Like
  • rubel
    , contributor
    Comments (577) | Send Message
     
    to leahyinvestor......how long have you been investing in ge????? ever increasing dividends????? just to let you know ge DECAPITATED its dividend in 2009! from $1.24 to 40 cents....thats some haircut! the dividend and shareprice are still 30-35% lower then in 2006-07.
    2 Feb 2014, 11:30 AM Reply Like
  • cowbow21
    , contributor
    Comment (1) | Send Message
     
    This article is a little misleading...GE will still be a bank. This is a SPINOFF of the RETAIL Finance business portion of GE Capital, not GE Capital entirely. They will still have a consumer bank here in the US and still have international banks.
    4 Feb 2014, 07:06 PM Reply Like
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