By Toby Sterling
AMSTERDAM (Reuters) - Philips (AS:PHG) said on Thursday it has set pricing in the initial public offering of its lighting division at 20 euros per share.
The offer price implies a market capitalisation of 3.0 billion euros (£2.3 billion) for the Philips Lighting
After the IPO Philips Lighting will be the world's largest independent lighting maker, surpassing rival Osram of Germany.
Frans van Houten, the chief executive of parent company Royal Philips called the spin off a "strategic milestone" that will allow the main company to "focus on the fast-growing health technology market."
The offer price was slightly below the mid-point of the 18.50-22.50 euro range Philips had set when it announced the intention to move ahead with the IPO last week.
However, appetite for the offering was oversubscribed "multiple times" at the 20 euro per share price, Philips said.
Royal Philips was founded as a lighting company in 1891 and Van Houten made the decision to separate lighting from the rest of its business two years ago.
Philips will raise 750 million euros from the sale of a 25 percent stake in the initial float, and plans to sell off its remaining stake over a period of years.
Shares are to begin trading on the Euronext exchange in Amsterdam on Friday under the symbol "LIGHT."
Philips Lighting CEO Eric Rondolat in a statement thanked investors for their trust. He says he expects Philips Lighting to thrive by using its cash flow to fund investment.
