|
ABB
had pushed back the proposed IPO of the E-mobility business
earlier this month, although it had planned to launch the
process in the "coming weeks".
The company postponed the process on Monday, and gave no
timeline for when it expected to resume the flotation of the
business which makes high-speed charger devices for buses and
cars.
"The listing of the business remains an important part of ABB's
strategy," ABB said. "However, recent market conditions have
made 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
proceed with a listing of the business on the SIX Swiss Exchange
as and when market conditions are constructive."
The company could be concerned that listing E-mobility, which
had sales of around $323 million in 2021, now would mean it
would not raise sufficient value.
The blue-chip Swiss Market Index has lost 17% in value over the
past six months as jitters over rising inflation, central bank
policy tightening and a global economic slowdown have hit
investor sentiment. The broader Swiss Performance Index has shed
19%.
ABB hopes to raise at least $750 million from the IPO, and keep
a majority stake in the business.
The Zurich-based company has still not decided whether to spin
off or sell its turbocharging business. A final decision was
still expected within weeks, a company spokesperson said.
(The story corrects sales figure in paragraph 6 to $323 million
from $750 million.)
(Writing by John Revill and Miranda Murray, editing by Rachel
More and Michael Shields)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
