Honeywell: I View The Quantinuum IPO As A Decent Capital Raise
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Gytis Zizys3.83K FollowersFollow5ShareSavePlay(8min)CommentsSummaryHoneywell International Inc. is accelerating plans to IPO its quantum computing unit Quantinuum, potentially at a $10B valuation, crystallizing value for HON’s 54% stake.The IPO would unlock over $5B in value currently unrecognized, aiding HON’s ongoing separation into focused entities and reducing the conglomerate discount.Quantinuum’s spinoff will clean up HON’s financials by removing a loss-making segment, supporting clearer reporting and strategic capital redeployment.HON shareholders benefit from value realization and operational clarity, while direct IPO allocation is not expected; Aerospace remains the main catalyst. bpawesome/iStock via Getty Images Introduction Honeywell International Inc. (HON) has been in the news lately due to its continued efforts to spin itself into multiple entities to lose that conglomerate discount. This morning, the company saw some action because itThis article was written byGytis Zizys3.83K FollowersFollowMSc in Finance. Long-term horizon investor mostly with 5-10 year horizon. I like to keep investing simple. I believe a portfolio should consist of a mix of growth, value, and dividend-paying stocks but usually end up looking for value more than anything. I also sell options from time to time.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.