General Electric Co (NYSE:GE) spin-out Vernova gained in its first day of trading on the New York Stock Exchange after the manufacturing giant split its core businesses.
Come late morning, shares in the newly listed energy company were up 0.6% at US$42.92.
This comes after General Electric’s healthcare business was spun off last year, with the plan ultimately leaving the core aerospace business as one of three separate entities.
Chief executive Larry Culp had laid out the plan in 2021 in a bid to reinvigorate the company, which had a market capitalisation of US$191 billion on Monday’s close, against US$600 billion in 2000.
“As independently run companies, the businesses will be better positioned to deliver long-term growth and create value for customers, investors and employees,” the firm said at the time.
Culp remains General Electric's chief executive, while Scott Strazik heads up Vernova.
General Electric fell 20.9% to US$138.71 on Tuesday following the break-up.