FRANKFURT, June 21 (Reuters) - Osram, the lighting company to be spun off from Siemens next month, warned that its shares could drop on their market debut as some institutional shareholders seek an immediate exit.
In the listing prospectus published on Friday, Osram said that mutual funds whose investment guidelines limit them to blue-chip stocks in Germany’s DAX index would have to sell.
U.S. owners of Siemens shares in the form of American Depositary Receipts (ADR) would also not be able to keep the Osram shares because the depositary banks are forced to sell the new shares and give the proceeds to the owners.
“That is why it is not unlikely that immediately after admission to regular trading of our shares there will be considerable selling pressure,” the prospectus said.
Osram IPO-OSR.F is scheduled to be listed on the German stock exchange on July 8.
Companies that plan to go public typically have to include in their prospectus the investment risks for shareholders.
Siemens aims to spin off 80.5 percent of Osram, which it says is worth about 3.2 billion euros ($4.2 billion), as it seeks to focus on its most profitable businesses.
Shareholders will receive one share in Osram, the world’s second biggest player in the lighting industry after Philips , for every 10 Siemens shares held.
An investor roadshow has been scheduled for June 24 through July 5. ($1 = 0.7590 euros) (Reporting by Ludwig Burger and Alexander Huebner; Editing by Marilyn Gerlach/Ruth Pitchford)