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ABB Raises $209 Million from Placing Shares in its e-Vehicle Charging Business

ZURICH, Nov 21 (Reuters) - ABB has raised roughly 200 million Swiss francs ($208.99 million) from issuing new shares in its electric vehicle charging business, the Swiss engineering and technology company said on Monday.

The money was raised in a pre-IPO private placement, the company said, led by new minority investors. ABB had delayed its planned flotation of the business earlier this year, citing stock market turbulence.

The placement of 8% of the new company's stock would give E-mobility, which makes charging equipment for electric cars and buses, an equity value of 2.4 to 2.5 billion Swiss francs.

ABB, which following the placement will hold 92% of E-mobility, has previously indicated it plans to carry out the flotation in the second half of 2023.

The transaction will close during the fourth quarter 2022, ABB said, with the proceeds being used by E-mobility to grow organically and also make acquisitions in hardware and software.

The investors include Interogo Holding, a foundation-owned international investment group based in Switzerland, as well as moyeal holding, a Swiss family office, and E-mobility chairman Michael Halbherr.

"We remain committed to our strategy to separately list our E-mobility business subject to constructive market conditions," said ABB CEO Bjorn Rosengren in a statement.

"The private placement underpins our joint commitment to ensure ABB E-mobility’s fast growth in order to remain best positioned to lead the sector in EV charging solutions."

($1 = 0.9570 Swiss francs)

Reporting by John Revill

Source: Reuters

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