Philips Lighting IPO: a small idea for my Dutch readers

Philips, a well-known Dutch company, is going to separate itself in two companies later this month through an IPO. Usually participating in IPOs is a losers game for retail investors because the shares of the most attractive companies are often allocated to the most important clients of the big banks. Here in the Netherlands the situation is a bit different though, because retail investors often get preferential treatment and the case of Philips Lighting is not different.

Royal Philips is offering 37.5 million shares of Philips Lighting, and up to 10% of the offering is reserved for retail investors who will be allocated the first 250 shares without being prorated. This means that a maximum of 15,000 retail investors can subscribe to the offer without fear of being prorated. The shares have an indicative price range of €18.50 – €22.50. Since most IPOs are priced at a point where you are expected to make a profit on the first day of trading I have subscribed to a couple of shares. I don’t expect a big upwards move on the first day, Philips Lighting is not World Online, but just like ABN Amro last year I expect to make a few percent.

Philips Lighting IPO illustration

Disclosure

No position (yet)

3 thoughts on “Philips Lighting IPO: a small idea for my Dutch readers

  1. pietje

    They asked me to mail a picture of me in my wooden shoes and I had to pronounce ‘Scheveningen’ over the phone.

    Reply

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