Benzinga | Jul 1, 2021 06:21PM EDT

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

* 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.