According to three people familiar with the subject, Swiss technology firm ABB aims to float its e-mobility sector on the stock market next year in a deal that could value the fast-growing business at around US$3 billion. A global surge in battery-powered vehicles is boosting the e-mobility industry, which provides quick chargers for electric cars and buses.
ABB had previously declared preparations for an IPO, but had not provided a date or a valuation. Bjorn Rosengren, the company’s CEO, indicated in April that after an IPO, the company would likely keep a majority interest, which would allow the unit make acquisitions. According to the sources, the company is collaborating with investment bank Lilja on the e-mobility IPO preparations, and UBS and Morgan Stanley are expected to win the global coordinator mandates for the 2022 IPO. The three banks, as well as ABB, declined to comment. According to the sources, the carve-out of the unit, which has activity in 85 countries, is still happening. They predicted that a settlement will be reached in the first half of 2022, but that it could be delayed.
As countries transition from gasoline-powered vehicles to electric vehicles and construct charging infrastructure, demand for ABB’s e-mobility equipment is high.
The European Union has set a goal of installing one million charging points by 2025 and three million by 2030, up from the 225,000 that were operational in 2020.
In 2020, ABB’s e-mobility division employed 850 people and generated revenues of US$220 million. Over the last five years, it has grown at a rate of 50% on average, though that rate is anticipated to slow in the following years. In May, Goldman Sachs analysts predicted that the unit’s sales would increase to $495 million next year.
Investors are valuing firms that create charging equipment for electric vehicles highly, with U.S. peers like ChargePoint and Blink Charging trading at more than 30 times estimated 2023 sales.
1 US dollar = 1.0819 Swiss francs
(Arno Schuetze and Oliver Hirt contributed reporting; Pravin Char edited the piece.)/n
