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GE Money Bank sets price range for Swiss IPO

Wednesday, 16 Oct 2013 | 9:19 AM ET
Ulrich Baumgarten via Getty Images

General Electric expects to value its Swiss consumer finance unit GE Money Bank at a total market capitalisation of up to 1.53 billion Swiss francs ($1.67 billion) when it lists it in the fourth quarter.

The price for each share will be between 43 and 51 Swiss francs at the initial public offering (IPO), Money Bank said on Thursday,part of General Electric's retreat from the finance sector to focus more on industrial business.

(Read more: GE partners with AT&T, Cisco, Intel for 'Industrial Internet')

The pricing implies a total market capitalisation of 1.29 billion to 1.53 billion Swiss francs, Money Bank said.

The selling shareholder, GE Capital Swiss Funding AG, would offer up to 18 million shares, or 60 percent of its stake, on the SIX Swiss exchange, Money Bank said.

(Read more: GE signs $2.7 bln power generation contracts with Algeria)

General Electric has said it aims to shift its earnings mix to 70 percent industrial and 30 percent financial.

Its banking unit, GE Capital, which has a consumer finance and banking business specialised in credit cards, personal loans, autofinancing and savings, contributed 45 percent of GE's earnings in 2012.

(Read more: The president has become too powerful: Jack Welch)

Proceeds from new listings have risen 14 percent this year globally but the Swiss market has been muted.

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