(Reuters) – Shares of GE HealthCare Technologies Inc reversed course to trade up 4.4% in their market debut on Wednesday, after the medical equipment maker completed its separation from industrial conglomerate General Electric Co.
GE said in 2021 it would split into three public companies to simplify its business, pare down debt and breathe life into battered shares.
However, the conglomerate’s stock fell 11.3% in 2022 as it struggled with parts and labor shortages. The company’s shares were up 2% on Wednesday.
But the healthcare unit, in which GE will hold a 19.9% stake after the spin-off, has been a bright spot in recent quarters, as strong demand for its medical equipment and services allowed it to raise prices.
GE HealthCare – which will operate imaging and ultrasound devices, patient care solutions and pharmaceutical diagnostics businesses – expects its addressable markets will expand to $102 billion by 2025 from $84 billion in 2021.
The company said in December it expects an aging population, chronic diseases and a rise in the middle class in many emerging markets to drive growth targets.
The company will be present in more than 160 countries and have about 51,000 employees worldwide, GE HealthCare said on Wednesday.
Shares of the company, which is scheduled to release its fourth-quarter and full-year results on Jan. 30, were trading at $58.40 on the Nasdaq.
(Reporting by Kannaki Deka and Leroy Leo in Bengaluru)
