ABB electric charging business lays out growth plans ahead of IPO

ZURICH : 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 40-45per cent 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 25per cent to 30per cent 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 15per cent to 20per cent 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.