ABB blames “challenging” market for delaying e-charging IPO again
2022.06.20 12:27
FILE PHOTO: The logo of Hitachi ABB is seen at an office building in Zurich, Switzerland September 10, 2020. Picture taken September 10, 2020. REUTERS/Arnd Wiegmann
BERLIN/ZURICH (Reuters) – ABB has further delayed the planned flotation of its electric vehicle charging business, the Swiss engineering and technology company said on Monday, citing the turbulence unsettling stock markets.
ABB had pushed back the proposed IPO of the E-mobility business earlier this month, although it had planned to launch the process in the “coming weeks”.
The company postponed the process on Monday, and gave no timeline for when it expected to resume the flotation of the business which makes high-speed charger devices for buses and cars.
“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 company could be concerned that listing E-mobility, which had sales of around $750 million in 2021, now would mean it would not raise sufficient value.
The blue-chip Swiss Market Index has lost 17% in value over the past six months as jitters over rising inflation, central bank policy tightening and a global economic slowdown have hit investor sentiment. The broader Swiss Performance Index has shed 19%.
ABB hopes to raise at least $750 million from the IPO, and keep a majority stake in the business.
The Zurich-based company has still not decided whether to spin off or sell its turbocharging business. A final decision was still expected within weeks, a company spokesperson said.
