IBM Completes Its Spinoff of Kyndryl Next Week. Markets Are Underwhelmed.

 IBM Completes Its Spinoff of Kyndryl Next Week. Markets Are Underwhelmed.

IBM‘s pending spinoff of Kyndryl, a gigantic provider of managed IT services, will be completed next week. But Kyndryl shares are already trading on a “when issued” basis, providing an early look at how investors will value the business.

Terms call for IBM to issue its shareholders one Kyndryl share for every IBM share outstanding. The spin will initially cover 80.1% of Kyndryl’s shares, with IBM planning to swap the rest of the stock for outstanding IBM debt at some point in the next 12 months. In a recent presentation to…

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