ABB delays IPO of E-mobility business citing ‘challenging’ market

An ABB Group EV charger for electric buses is seen through a fence, at an L.A. City Transportation Department (LADOT) DASH transit bus maintenance facility in downtown Los Angeles, California, U.S., August 21, 2021. REUTERS/Bing Guan/File Photo

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ZURICH, June 7 (Reuters) – ABB (ABBN.S) is delaying the initial public offering of its E-mobility electric vehicles charging business, the Swiss engineering and technology company said on Tuesday, citing “challenging” market conditions.

“Current market conditions make it challenging to complete the planned listing of ABB’s E-mobility business in the second quarter,” spokesman Daniel Smith said.

“Nevertheless, we constantly observe the market developments and intend to launch the IPO in the coming weeks subject to constructive market conditions.”

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Chief Executive Bjorn Rosengren said earlier in the year ABB expected to raise at least $750 million from the IPO. ABB will keep a majority stake in the business after the flotation on the SIX Swiss exchange, although how much remains to be determined.

The company also said on Tuesday it had still not decided whether to spin off or sell its turbocharging business.

“We are making good progress in carving out the turbocharging business and intend to make a final decision on a spin-off or sale in the coming weeks,” Smith said.

The Swiss automation group in February rebranded the business as “Accelleron”.

The division, whose products are used in ships, power stations, gen-sets, diesel locomotives and large, off-highway vehicles, employs more than 2,300 people and had about $750 million in sales during 2021.

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Reporting by John Revill; editing by Jason Neely, Robert Birsel

Our Standards: The Thomson Reuters Trust Principles.

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