GE Is Getting Its Retail Finance Ducks in a Row
General Electric (NYSE:GE) is putting pieces in place as it moves closer to spinning off its retail operations in an initial public offering, having recruited Goldman Sachs (NYSE:GS) and JPMorgan Chase (NYSE:JPM) to serve as underwriters and lead the process. It’s expected to take place sometime within the next two months, the Financial Times reports.
The division provides private-label credit cards and other retail financial services, and is estimated to be worth some $20 billion. The company has voiced interest in floating about 20 percent of the entity this year, the Times says. The retail operations are a unit within GE Capital.
The company is remaining mute on potential valuations, but calculations from public information put the value at roughly $4 billion, making the potential listing one of the largest on the U.S. market since Facebook raised $16.1 billion in May 2012.
After the IPO, GE reportedly plans to distribute the remaining part of the unit via share distributions to investors next year.