U.S. markets close in 2 hours 12 minutes
  • S&P 500

    4,144.99
    -0.20 (-0.00%)
     
  • Dow 30

    32,869.97
    +66.50 (+0.20%)
     
  • Nasdaq

    12,659.08
    +1.52 (+0.01%)
     
  • Russell 2000

    1,937.10
    +15.28 (+0.79%)
     
  • Crude Oil

    90.15
    +1.14 (+1.28%)
     
  • Gold

    1,805.30
    +14.10 (+0.79%)
     
  • Silver

    20.62
    +0.78 (+3.92%)
     
  • EUR/USD

    1.0203
    +0.0016 (+0.15%)
     
  • 10-Yr Bond

    2.7660
    -0.0740 (-2.61%)
     
  • GBP/USD

    1.2085
    +0.0015 (+0.12%)
     
  • USD/JPY

    134.6990
    -0.2710 (-0.20%)
     
  • BTC-USD

    23,938.54
    +702.40 (+3.02%)
     
  • CMC Crypto 200

    557.63
    +14.75 (+2.72%)
     
  • FTSE 100

    7,482.37
    +42.63 (+0.57%)
     
  • Nikkei 225

    28,249.24
    +73.37 (+0.26%)
     

ABB Gears Up For $3B EV Charging IPO In 2022: Reuters

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Swiss technology group ABB Ltd (NYSE: ABB) plans to list its e-mobility division on the stock market next year in a deal that could value the business at about $3 billion, Reuters reports.

  • The e-mobility business, which makes fast chargers for electric cars and buses, benefits from the global battery-powered vehicle boom.

  • The company remains tight-lipped regarding a possible IPO in 2022. ABB is likely to keep a majority stake after an IPO to help the unit make acquisitions.

  • ABB is working with investment bank Lilja on the preparations for the IPO with possible lead by UBS Group AG (NYSE: UBS) and Morgan Stanley (NYSE: MS).

  • The European Union aims for 1 million charging points by 2025 and 3 million by 2030, up from 225,000 in 2020.

  • The shift from petrol-fired cars to electric vehicles and charging infrastructure continue to fuel demand for ABB's e-mobility devices.

  • ABB's e-mobility business employs 850 staff and posted revenues of $220 million in 2020. It has recorded an average growth rate of 50% over the past five years. However, the growth rate is estimated to moderate going forward.

  • As of May, Goldman Sachs analysts estimated the unit's sales would grow to $495 million next year.

  • U.S. peers like ChargePoint Holdings Inc (NYSE: CHPT) and Blink Charging Co (NASDAQ: BLNK) trade at over 30x their expected 2023 sales.

  • Price action: ABB shares closed lower by 0.09% at $33.96 on Thursday.

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.