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

Swiss technology group ABB Ltd 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 UBS and Morgan Stanley 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 CHPT and Blink Charging Co BLNK trade at over 30x their expected 2023 sales.
Price action: ABB shares closed lower by 0.09% at $33.96 on Thursday.