Shares of Siemens AG (ETR: SIE) gapped over 5% today after witnessing a modest stock market debut of its Energy unit.
Siemens Energy made its debut in Frankfurt today after a spun off from its parent company. Shares opened at 22.01 euros on Monday, vaulting the company at around 16 billion euros.
The parent company was hoping that its energy unit will reach a market valuation of between 21-22 billion euros. Shares further dipped to 20.72 euros later in the session.
The German giant opted for a divorce due to lower profit margins the energy sector was recording. Siemens Energy owns a 67% stake in the world’s second-largest wind turbine maker Siemens Gamesa.
Siemens plans to reduce its stake of 35.1% to 25% in the next 12 – 18 months. According to Reuters, the company doesn’t see the need for new acquisitions after floating Siemens Energy.
“Conglomerates can do a lot of things well, but they’re really very good at only a few of the things that will be important for the future,” said CEO Joe Kaeser.
Siemens share price currently trades at 108.34 euros per share, which is 3% down on the day. Today’s low of 104.00 euros is the lowest Siemens stock traded in nearly 3 months.
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