This case covers the initial public offering (IPO) of the Siemens subsidiary Healthineers. The March 2018 offering of the health care technology firm was heavily anticipated on the Frankfurt Stock Exchange, and was Germany's largest IPO in more than 20 years.Healthineers was one of Siemens' most successful businesses, and its management board had a keen interest in its long-term success and in the valuation that financial markets would place on the company. The case allows students to learn about the IPO process, understand Siemens' strategic rationale, and estimate the value of Healthineers. Excerpt UVA-F-1881 Rev. Jul. 6, 2020 Healthineers: A Strategic IPO By early March 2018, CEO Joe Kaeser and the management board of Siemens AG (Siemens) had been focused on the progress of its Healthineers subsidiary for several years. Management planned an initial public offering (IPO) of Healthineers in mid-March to support the company's continued success and spur entrepreneurial independence. The IPO would position Healthineers to compete successfully in the global health care market, which was quite different from other sectors in which Siemens—a global technology conglomerate—operated (see Exhibit 1). Though Siemens would maintain a substantial equity interest, Healthineers would become a separate public company with increased flexibility and autonomy. Because Siemens would be a long-term shareholder, Kaeser and the board had a keen interest in Healthineers's strategy and performance. Would the company continue to drive profitable growth in the short term? Tap into adjacent growth markets in the medium term? Be a market leader in health care? In the immediate term, the board was especially interested in what value financial markets would place on Healthineers in the IPO. Siemens Healthineers AG . . .