ABB electric charging business lays out growth plans ahead of IPO

ZURICH (Reuters) – ABB’s E-mobility business wants to spend $750 million on expanding its operations after its flotation later this year, the company said on Thursday.

The cash will be used to fund acquisitions and organic growth as E-Mobility, which makes fast chargers for electric vehicles, chases faster growth in 2022.

It expects to increase its revenues by 40-45% this year after posting sales of $323 million in 2021, the company said ahead of its capital markets day.

In the mid-term, the business expects to outgrow the market for electric vehicle chargers and related services by increasing its sales by 25% to 30% per year.

“We are perfectly aligned to the current E-mobility trends and see massive market opportunities driven by the global electrification and digitalization agendas of countries, corporations and individuals,” Chief Executive Frank Muehlon said in a statement.

Other goals unveiled including a mid-term operational earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 15% to 20% in the mid-term after breaking even this year.

ABB gave no further details of the initial public offering of the E-mobility business.

Last week ABB CEO Bjorn Rosengren said the parent company expected to raise at least $750 million from the IPO, which is due to take place by the end of the second quarter of this year.

ABB will keep a majority stake in the business after the flotation on the SIX Swiss exchange, although how much remains to be determined.

(Reporting by John Revill; Editing by Michael Shields)

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