ABB pushed back a proposed IPO of the e-mobility business earlier this month, though it planned to start the process in the “coming weeks”.
The Swiss engineering and technology company said on Monday that ABB has further delayed its planned floatation of its electric vehicle charging business, citing volatile stock markets.
ABB pushed back a proposed IPO of the e-mobility business earlier this month, though it planned to start the process in the “coming weeks”.
The company on Monday put the process on hold and did not give a timeline for when it expects to resume business, which manufactures high-speed charger devices for buses and cars.
“The listing of the business is an important part of ABB’s strategy,” ABB said. “However, recent market conditions make it challenging to proceed with a planned share offering in the second quarter of 2022.
“ABB is monitoring market conditions and is fully committed to proceeding with the listing of the business on the Sixt Swiss Exchange when market conditions become favorable.”
The company may be concerned that the listing of e-mobility, which had sales of about $323 million in 2021, will now mean it won’t add substantial value.
The blue-chip Swiss market index has lost 17% in value over the past six months as rising inflation, tightening central bank policy and a global economic slowdown weighed on investor sentiment. The broader Swiss performance index is down 19%.
ABB expects to raise at least $750 million from the IPO, and is expected to hold a majority stake in the business.
The Zurich-based company still hasn’t decided whether to close or sell its turbocharging business. A company spokesperson said a final decision is still expected within weeks.
(The story skews the sales figure in paragraph 6 from $750 million to $323 million.)
(Writing by John Reville and Miranda Murray, Editing by Rachel Peacock and Michael Shields)
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