A healthcare giant has been born: General Electric completed the spinoff of its healthcare business, GE HealthCare Technologies on Wednesday, with the shares trading on the Nasdaq under the ticker GEHC.
GE investors face a choice: keep shares in the healthcare business they received in the spinoff, or cash out. GE HealthCare shares closed at $60.49 on Wednesday, up about 8%, and GE traded at $70.20, off about 17%. GE shareholders got one share of GE HealthCare for every three GE shares held, meaning that roughly $20 a share in GE stock value is now represented by GE HealthCare shares. Putting GE HealthCare back into GE gets investors $90.36 for the value of all GE investments. GE shares closed at $84.98 on Tuesday, so investors’ total stake in GE investments rose about 6% on Wednesday—not bad.