Synchrony Financial GE’s Consumer Lending Division Sets Terms For $3.1 billion IPO
On Friday Synchrony Financial announced the terms for its IPO. It is the US consumer lending division of General Electric. The company based in Stamford plans to raise $3.1 billion through an offer of 125 million shares which would be ranged at a price of $23 to $26.
Synchrony runs three main business channels.
Its retail credit card segment in the quarter which ended on March 31, 2014 earned 69% of net revenue and had 24 partners, which included Amazon, Gap, and Wal-Mart in 34,000 locations.
Fifteen percent of its net revenue comes from the promotional financing offers which allow lessened and delayed interest for key consumer purchases. Synchrony earned another 16% of its revenue from the company's credit cards which offer promotional financing spread across a range of companies dealing with health care.
Synchrony Financial was founded in 1988. The company earned $10.5 billion from sales in twelve months that ended on March 31, 2014. It plans to list itself on the NYSE under the symbol SYF.
On Friday GE started with its road show to attract investors for the IPO of its lending unit which it plans to call Synchrony Financial.