Philips Lighting IPO a Great Indicator for LED Source

Philips Lighting IPO a Great Indicator for LED Source

Philips Lighting IPO a Great Indicator for LED Source

Philips set an IPO price of 20 euros Thursday night, implying a market capitalisation of 3 billion euros ($3.4 billion), or an enterprise value of 4.5 billion euros including debt.. The shares rose eight percent to 21.45 euros in early trading in Amsterdam.

Philips has dominated the global lighting industry for sometime and there are few serious contenders for this multi-billion dollar industry, fortunately for us we are invested in LED Source a company that has a real shot at this market with their new Effinion product.

Philips, the much larger parent company, sold a 25 percent stake in the initial float, raising 750 million euros. It plans to sell off the rest of its holdings in coming 2 years. That means Philips is out of the lighting industry within 2 years.

Philips Lighting must improve margins in its professional lighting business if it is to succeed against competitors, which include not only LED Source but Osram, General Electric. The fast-growing newcomer LED Source has been developing new products and has been fast to embrace “The Internet of Things” and bring new technology in to the mainstream business.

LED Source has become the leading international solutions provider for professional, high quality LED lighting products. LED Source specialize in design, support, product development, project management, procurement and financing for the commercial, entertainment, and residential markets.

LED Source has formed an industry leading team of LED lighting experts with over 100 years of combined experience. Our clients include a cross section of end users and resellers from every area of entertainment lighting, architectural lighting and now retrofit.

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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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