Osram IPO threatened by economic woes and LED slowdown

Siemens AG announced in March a plan to publicly list its Osram GmbH LED and lighting subsidiary in an initial public offering (IPO) planned for this fall, but recent stories in the press have suggested that Siemens may change its plans. The combination of a tough solid-state-lighting (SSL) market and weakness in the equity markets may have significantly lessened the potential IPO value.

A Reuters story published earlier this month was among the first to suggest that Siemens might delay the IPO or pursue a different strategy for spinning out the Osram unit. Analysts that had valued Osram as high as 6 to 8 billion euros ($8.6 to $11.4 billion) now expect a drop in valuation of as much as 35%.

Given that Siemens planned all along to maintain what it called a "anchor shareholder" position in the public Osram, it's worth considering why the IPO was planned. Siemens had originally said that the IPO would give Osram the "operational freedom" to grow the operation and advance SSL technology.

William Mackie, Senior Analyst Capital Goods at Germany-based Berenberg Bank has followed the situation and sees two main reasons for the IPO. He said it would "enable Osram to develop a more entrepreneurial approach to grow the business in the face of the changing business model within the lighting industry." And he said the spinout would allow Siemens to focus on its "core activities in energy, industry, and healthcare."

Prospects for the IPO

When asked if he thought the IPO would go forward as planned, Mackie said, "Under the current market conditions the likelihood of the IPO proceeding this fall has significantly decreased. We believe Siemens continues to prepare for an IPO and will make a final decision in the next 2-3 months."

The devaluation is pegged to two things. First the global economy is on shaky footing. And second, the LED and SSL business is less robust than many expected for this year. The demand for LED-backlit TVs was lower than many LED manufacturers expected and many LEDs originally destined for that market have been sold at bargain prices into general-illumination applications – even though those LEDs may be less than ideal for general illumination. There is also increasing price pressure both on LED components and SSL luminaires caused by new players in Asia.

Legacy lighting is also impacting the situation. About the leaders in the lighting business, Mackie said, "Osram, together with GE and Philips, are walking a balance between the growth of LED-related business in general lighting and the decline of some traditional lighting technologies, such as incandescent."

One option is simply waiting for the market to improve, and Mackie expects another upwards cycle. "I certainly expect another upturn in demand to emerge as adoption of LED lighting solutions in the general lighting market develops, although this is likely to occur at lower price points," said Mackie. "In the traditional lighting technologies the light manufacturers are also currently being impacted by a sharp increase in prices of rare-earth metals which is denting profitability. Siemens may indeed wait for these two factors to pass and then proceed with an IPO under better conditions."

New investments in Osram

The Reuters story discussed the need for Siemens to make new investments into Osram if the IPO is delayed for more than six months. But Osram certainly has a strong technology base and patent portfolio.

What Osram may need is money to build out an ecosystem to address the disruptive market changes caused by the shift to LED lighting. Mackie said, "The business model around selling traditional lighting technologies is under threat from LED which brings new entrants and a new sales proposition." The message is the light bulb market is going away, and Osram may need to expand its SSL luminaires business and expand the consultative sales channels required to supply SSL systems.

Osram has also been in the news quite a lot lately given its ongoing patent disputes with Samsung and LG. Does that have any impact on how the IPO proceeds? "The patent battles have been a feature of the industry for many years and are no different to past actions between other players," said Mackie. "I don't see any impact on the IPO. Ultimately this will probably be concluded with a cross-licensing agreement and a financial settlement."

LEDs Magazine asked Osram and Siemens to comment on their IPO plans, and the companies declined. Stay tuned for what will likely be an ongoing story to follow as the leaves turn.


Zierick Manufacturing Corp

Offers innovative solutions for interconnect applications. Specializes in wire-to-board and board-to-board applications. Provides surface mount and thru-hole products while further reduci...

Cree Inc

Leads the LED industry in performance, brightness and reliability with its XLamp LED family, enabling the lighting industry with efficient, environmentally-friendly LEDs that produce beau...

InnoLight sp zoo

EU located lighting manufacturer for LED GU10 5W 600lm CRI>80 reflector, great performance, and LED E27 5W 380lm classic traditional appearance.

CSA Group

A global solutions provider of product testing and certification services for electrical, mechanical, plumbing, gas, medical and a variety of other products.

Energy Efficient Lighting

Energy Efficient Lighting offers total solutions to both conventional and more advanced LED lighting fixtures and LED retrofit kits for commercial and industrial applications.


48 companies worldwide, passionate about light and innovation, experts in developing LED lighting solutions for safe and comfortable environments with significant energy and cost savings,...

Guardian Industries

Guardian Industries Corp. is a leader in float glass, fabricated glass and high performance coated glass products. Guardian lighting solutions deliver optimal performance, flexibility and...

ELMA Electronic Inc

Provides standard and customized LED solutions. Elma's LED family offers consistent, reliable, and durable illuminating and indicating solutions.

LEDSAmerica Inc

LedsAmerica is a full line LED line company and has manufacturing in Iowa where T8 LED-O tubes and street lights are made together with PL, PARs, High Bay lights. MAx

Lumentra Inc

Provides NVLAP accredited optical (photometry, colorimetry, Lumen maintenance), thermal (mapping and transient analysis), electrical characterization services, product development, supply...


The LED, DC-DC and AC-DC power supplies from 1W - 1600W. Cincon’s lighting controllers, interfaces and devices incorporating DALI protocol. LED drivers from 25W - 150W with international ...


LTF, LLC is a U.S based solid-state lighting product development and manufacturing company with facilities located in both USA and China.

Marian Inc

Marian is a global company who supplies die cut and converted parts to the LED market. Materials include thermal pads, reflective, venting, gaskets, insulators, diffusers and more.

Colorimetry Research

Specializes in the field of optics, manufacturing, electronics and software enables us engineer products with the right balance of hardware and software.

eldoLED America Inc

Designs and manufactures drive solutions for LED based lighting systems. Our technologies empower our customers to deliver the promise of LED lighting.

Cirrus Logic Inc

Cirrus Logic develops high-precision, analog and mixed-signal integrated circuits for a broad range of innovative customers across a variety of energy-related applications, including the ...


Established in 2002 as an ecommerce store for all your LED product needs.


Designer and manufacturer of custom and industry standard LED, DC-DC and AC-DC power supplies from 1W to 1600W. Cincon also designs and manufacturers lighting controllers, interfaces...

Illumination Machines

Illumination Machines designs custom optics, heat sinks, and remote phosphor systems for LED luminaires and lamps.

eldoLED BV

eldoLED is a world leader in the design and manufacture of intelligent drive solutions for LED based lighting systems. Our technologies empower our customers to deliver the promise of LED...

Cree LED Modules

Cree LED modules deliver beautiful, consistent light, backed by a 5-year warranty. They offer a choice of dimming options, while reducing the lighting power load by 80%.

Cree XLamp® XP-L LEDs-the industry’s highest efficacy single-die LED.

Cree® XP-L LED is the first commercially available single-die LED to achieve up to 200LPW at 350mA. The XP-L enables 50% or more performance increase as a drop-in upgrade.

Surface Mount Wire Gripper - Part Number 1301

The Zierick 1301 is designed to allow customers to easier terminate a stripped wire to a PCB. Wire sizes to 24 AWG. Terminal is UL Recognized.

Surface Mount Wire Gripper - Part Number 1262

The Zierick 1262 is designed to allow customers to easier terminate a stripped wire to a PCB. Wire sizes from 0.025" to 0.095". Terminal is UL Recognized.

Unlock new LED lighting solutions with Cree High Density LEDs

Cree® High Density LEDs deliver the industry’s highest optical control factor enabling lighting manufacturers to improve performance, cost and size of LED lighting—enabling never before p...

Cree CXA LED Array Family

Cree’s CXA LED Arrays are optimized to simplify design and lower system cost, delivering high lumen output and efficacy with a family of single, easy-to-use arrays.

Cree XLamp® XM-L2 EasyWhite® LED

The first 5mmx5mm LED to enable color-consistent 50W halogen performance; the XM-L2 EasyWhite delivers 1,100 lumens and is optimized to replace halogen technology.

Surface Mount Insulation Piercing Terminals

Surface Mount Wire-to-Board terminals available for wire gauges ranging from 24 to 14 AWG. Parts can be terminated to allow daisy-chain applications. Eliminates difficulty with direct...

LED flexible strip and aluminum LED bar

Full range of LED strip and bar including the unique high lumen strip. Protection degree up to IP68.Epistar 3528/5050 SMD LED.Compliant with CE & RoHS.2-year warranty.3528: 60LED/m,120LED...

P3 Indoor Full Color LED Display Video screen

High-density pixel pitch,high resolution,high refresh rate,magnificent and high-definition image and video effect.P3,P5,P6,P7.62 to P10 available.Epistar SMD LED,wide viewing angle.High r...

LED Panel Light

Designed to replace T8 fluorescent tube or Phillip Grille light.Epistar 3528/3014 SMD LED.Aluminum alloy body.Even and Soft light beam.Various mounting means.50,000 hours lifetime.Environ...

Rotatable LED Down Light, beam angle adjustable 10-60°

Beam angle adjustable 10-60 degree.Shell can rotate 360°,vertical 0-40°.High power CREE LED,even and uniform light output,Die casting aluminum alloy housing,good heat sinking.Widely used ...

Solar LED Paver Light

100% solor powered.No wires, no electricians.Super capacitors instead of battery,maintenance-free.Absorb sunlight in daytime and illuminate 8-12 hours during night. Epistar LED.Activation...

T8 LED tube light

Epistar Super bright 3528/2835 SMD LED.Aluminum alloy body with plastic cover.Consist with traditional fluorescent tubes.Easy mounting.PF>0.90,CRI>72,Over 60% energy-saving,Low degradatio...

LED light Bulb – LED spotlight

The AR111,GU10,MR16,PAR30,PAR38 LED bulbs are ideal replacement of 10-75W halogen or CFL bulbs.Cree/Everlight LEDs.PMMA lens.Aluminum housing.Good heat dissipation.Surface temperature les...

Super bright Injection LED modules

Housed by ABS material,covered by epoxy resin on surface with good insulation.Beautiful appearance.Waterproof.Anti-fire.Super bright 5050/3528 LED.12V voltage.Ideal light source for backl...

Flexible LED screen - Rental and Stage LED billboard

Special design,flexible use,light weight,super slim,transparent,SMD technology,easy to install.Can realize any curved and creative installation horizontally and vertically.IP65 protection...

iVAR COB LED Downlight

iVAR COB LED Downlight use die-casting magnesium alloy to make the main body,has Excellent heat dissipation performance,and Unique and delicate looking design.

LIMS - Liquid Injection Molding System

Silicone LIMS can be used to injection mold silicone components such as lenses or gaskets in an automated process. The two-component, thermoset material ranges in Shore A hardness from 5-80.

360 degree 10W led bulb

360 degree 10W led bulb has high efficiency, high power factor,environmental friendly, unique heat-dissipating design and perfect thermal management.







Have a press release or other announcement you'd like to share?

Submit Announcement

Miss a webcast? Watch it in the archives


LEDs Magazine Newsletter

Our weekly flagship news source

Product Focus

Monthly newsletter

Illumination in Focus

Bi-monthly newsletter

Copyright © 2007-2014. PennWell Corporation, Tulsa, OK. All Rights Reserved.