Blackberry announced this month that it is setting up a separate IoT business with the plan next year for an initial public offering (IPO), probably in June.

Based on input from the current process and with the support of management, the Blackberry’s board has determined that separating the IoT and cyber-security business units into two independently-operated entities is the best direction for the company.

The IoT business is a specialist in high-performance, safety-critical foundational software in automotive and other verticals. The IPO launch will be in the first half of the next fiscal year.

Blackberry believes a separately-traded IoT subsidiary will enable shareholders to evaluate more clearly the performance and future potential of Blackberry’s principal businesses on a standalone basis, while allowing each business to pursue its own strategy and capital allocation policy.

“The board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders,” said John Chen, CEO of Blackberry (www.blackberry.com). “Both the IoT and cyber businesses have leading technology and talent and address large and growing market opportunities. This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers.”

The Canadian company is keeping further details about the IPO close to its chest and has not responded to multiple requests from Newsdesk for further information.

However, Chen said in an investors’ briefing last week that the shareholders were particularly interested in the IoT business and that the IPO would unlock value for them. This should give more visibility for capital markets on the IoT business’ financial profile and performance. This could also increase operational and capital allocation flexibility for both the cyber and IoT businesses.

Chen said the company wanted to continue growing the cyber business profitably. He said the cyber business at the moment was not growing and was losing money. The IoT business, including QNX, was profitable, he said, but there were no plans to use that to subsidise the cyber business.

The process of separating the financial operations of the two businesses has already started.

Chen said he hoped the IPO would go ahead in June to avoid the summer months but that if it didn’t happen then it would probably be September. He said the IPO would follow a plan similar to the Intel-Mobileye model.