ABB Delays IPO Of Electric Vehicle Charging Unit

Swiss engineering and technology company ABB on Monday further delayed the planned $750 million (£613m) IPO of its electric vehicle charging business, saying the timing of the flotation would depend on improved market conditions.

It said current market conditions made it difficult to see the flotation happening in the current quarter but that it remained “fully committed” to listing the business on the Swiss stock exchange.

The IPO will go ahead “as and when market conditions are constructive”, ABB said in a statement.

It added that it is preparing a “new dedicated identity under the ABB brand” for the unit.

Market turbulence

Share listings have slowed significantly this year due to market volatility caused by the war in Ukraine, rising interest rates, poor expectations of economic growth and rising inflation.

ABB said earlier this year it expects to raise at least $750m from selling shares in the unit, while keeping a majority stake in the business.

It said it would invest the funds in expanding the business amidst high demand for both fast and normal electric vehicle charging.

The company, based in Zurich, has not yet decided whether to spin off or sell the charging unit. A spokesperson said a decision on the matter was still expected within weeks.

‘Fully committed’

ABB put off the proposed IPO earlier this month, saying it planned to restart the process in the “coming weeks”.

“The listing of the business remains an important part of ABB’s strategy,” ABB said. “However, recent market conditions have made it challenging to proceed with a planned share offering in the second quarter of 2022.

“ABB is monitoring market conditions and is fully committed to proceed with a listing of the business on the SIX Swiss Exchange as and when market conditions are constructive.”

The E-mobility unit, which makes charging systems for cars and buses and related installation and maintenance services, which it provides to operators such as Germany’s Ionity and US-based Electrify America.

Electric vehicle boom

Sales of battery-powered vehicles have been rising sharply and accounted for nearly one-fifth of deliveries in Europe last year, including plug-in hybrids, increasing demand for public charging points.

ABB’s chief executive Bjoern Rosengren, under pressure from shareholders to increase profits, has been reorganising the firm’s conglomerate structure and in July agreed to sell its Dodge mechanical power transmission unit to RBC Bearings for $2.9bn.