In its results statement for the first quarter of 2015, Bombardier said: "The corporation has been proactively reviewing its strategic options for its rail business, given the ongoing industry consolidation. When completed, the IPO is expected to crystallize the full value of Bombardier Transportation and further strengthen the corporation's financial position, while preserving flexibility should it wish to participate in future rail equipment industry consolidation."

The IPO is expected to take place in the fourth quarter, subject to market conditions, and the listing is likely to be carried out in Germany, where Bombardier Transportation is headquartered. The size of the stake has not been disclosed.

Bombardier says that the rail unit will continue to be controlled by the parent company after the IPO and will be consolidated in its financial results.

Bombardier Transportation revenues for the three months ending March 31 fell 10% compared with the same period in 2014, reaching $US 2.04bn. Order intake for the period reached $US 1.2bn while the order backlog on March 31 stood at $US 29.8bn, compared with $US 32.5bn at the end of December 2014. Ebitda for the quarter fell 8% year-on-year to $US 144m.