ABB explores EV charging unit IPO to help fund acquisitions
ABB Ltd. will carve out its electric vehicle charging business into a separate legal structure to prepare the unit for a potential listing and boost its ability to make acquisitions.
The Swiss engineering giant is the market leader in EV charging and growing “extremely fast," ABB Chief Executive Officer Bjoern Rosengren said in an interview with Bloomberg Television. The business could fetch a valuation between $1.5 billion and $2 billion, according to William Mackie, analyst at Kepler Chevreux.
“We need during the coming years to make many acquisitions within this area to keep the leading position we have today in the market," Rosengren told Bloomberg TV. ABB also reported earnings Tuesday that beat estimates and forecast that comparable orders and revenue will increase more than 10% in the second quarter.
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ABB’s e-mobility business includes home and highway chargers and electric bus and truck fleet depots. An IPO would bring in funds to make software-related acquisitions, Rosengren said during an earnings call. ABB would like to keep majority control of the unit after a listing, he added.
ABB shares rose as much as 2.3% in Zurich trading. The stock is up about 24% this year.
