GE consumer lending arm Synchrony Financial sets terms for $3.1 billion IPO; largest US IPO since Facebook

By Renaissance Capital,

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Synchrony Financial, the US consumer lending arm of conglomerate General Electric, announced terms for its IPO on Friday. The Stamford, CT-based company plans to raise $3.1 billion by offering 125 million shares at a price range of $23 to $26. At the midpoint of the proposed range, Synchrony Financial would command a market value of $20.3 billion.

Synchrony has three primary business channels. For the quarter ended March 31, 2014, its retail credit card segment drove 69% of net revenue and had 24 partners, including Gap ( GPS ), Amazon ( AMZN ) and Wal-Mart ( WMT ), across 34,000 locations. Accounting for 15% of net revenue, its promotional financing offers reduced and deferred interest for major consumer purchases. Synchrony generated the remaining 16% of revenue from credit cards that offer promotional financing across a network of health care partners. 

Synchrony Financial, which was founded in 1988 and booked $10.5 billion in sales for the 12 months ended March 31, 2014, plans to list on the NYSE under the symbol SYF. Goldman Sachs, J.P. Morgan, Citi, Morgan Stanley, Barclays, BofA Merrill Lynch, Credit Suisse and Deutsche Bank are the joint bookrunners on the deal. It is expected to price during the week of July 28, 2014.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: News Headlines IPOs
Referenced Stocks: GPS , AMZN , WMT , SYF

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