How To Trade The Possible Osram IPO (SI, GS, DB, PHG)

Siemens AG,

is looking to

within the next couple of months, according to people familiar with the discussion. Siemens, the German-based industrial conglomerate, has hired Deutsche Bank AG, Goldman Sachs Group Inc. and Commerzbank AG to prepare the IPO. Osram is world's second-largest lighting company Royal Philips Electronics NV,

, and has an enterprise value of around $9 billion, according to Morgan Stanley. “We will see quite a few IPOs this year, especially as soon as the reporting season is over,” said Raimund Saxinger, a fund manager at Frankfurt Trust Investment GmbH. “Index levels and therefore valuations are higher than 12 months ago, so it makes more sense for companies to go for IPOs.” Investors could play this by going long the banks that are managing the IPO, as these banks are going to reap the benefits of the IPO with high fees, since it's a large IPO. Investors could also go long Philips, as the IPO will bring more light to the sector. Sales and new orders at Osram rose 14% to 1.28 billion euros in the first 3 months of fiscal 2011.