With the hope of raising one billion euros, Dutch electronics giant Philips announced that it will float 25 percent of its shares in a highly anticipated IPO of its lighting arm.

Reserving the option of releasing more if the offer is over-subscribed, the Amsterdam-based company said it would release some 37.5 million shares for the initial public offering on May 27.

Between 694 million euros to 970 million euros ($784 million to $1.09 billion) could be raised by the floatation.

With the aim of focusing more on medical equipment, Philips said it was selling off its core lighting business—a mainstay of its income for more than a century, the company had announced in September 2014.

Valuing the lighting arm at around 2.78 to 3.38 billion euros, the expected price range for the initial public offering would be set at between 18.50 euros to 22.50 euros.

However its lighting arm would still carry some 4.32 to 4.92 billion euros in debt, the company said in a statement very recently. Philips is a household name around the world for its home appliances.

“Today’s announcement is an important next step in the planned initial public offering of Philips Lighting on Euronext Amsterdam, signalling that the process is well on track,” said chief executive pf the company, Frans van Houten.

However the stock market reacted coolly where the company shares on the AEX dropping 2.82 percent in early trade to 22.36 euros.

For the past dozen years Philips has increasingly shifted its focus to medical equipment, which now accounts for more than 40 percent of sales even as the company had sold its first light bulb a few years after it was founded in 1891.

Medical technology where margins are strong and less vulnerable to competition from emerging markets is now the announced focus area of Philips and the move of IPO is intended to meet the focus.

With business operations and selling units in around 180 countries and is still a major money-spinner, the lighting business of Philips produces LED lights, halogen and fluorescent lamps and other electronic components.

The company said that Philips Lighting managed to make 547 million euros in adjusted earnings before interest, tax, and amortization last year.

The wing holds a patent portfolio of over 14,000 patent rights and has manufacturing plants in more than 20 countries.

The offer and subscription period opened at 9:00 am (0700 GMT) Monday and will remain open until midday on Thursday for some investors.

The final price offer will be announced on Thursday, May 26.

Company officials had pledged to release up to 28.75 percent of shares if the IPO was oversubscribed having seen the interest that they had already received and termed it as being “very encouraging”.

Both Royal Philips and Philips Lighting would “be even better equipped to focus on innovation, entrepreneurship” and growth is both the companies were separately listed, said Van Houten.

“As a standalone, listed company we will be committed to further expanding our global market-leading position in the general lighting market,” said the chief executive of the lighting arm, Eric Rondolat.

(Adapted from Wall Street Journal)