ABB E-Mobility takes in €326 million in financing
Swiss technology group ABB has raised a further 325 million Swiss francs from four investors, including Porsche SE, for its e-mobility division with its charging station business in the second and final round of its pre-IPO private placement.
ABB had raised around 200 million Swiss francs in the first pre-IPO private placement. This raised a total of about 525 million Swiss francs (527.2 million euros at the current exchange rate). In the first round, eight per cent of the shares were ceded, in the second round now twelve per cent. ABB thus holds about 80 per cent of the shares in ABB E-Mobility.
The new investors in the second pre-IPO private placement include Porsche, the US fund BeyondNetZero, the sovereign wealth fund GIC of Singapore and the British investment company Just Climate. What is important in the case of Porsche is that it is Porsche Automobil Holding SE, the company in which the Porsche and Piech families bundle their shares in Volkswagen AG and Porsche AG – and also invest in other companies in the mobility and industrial technology sectors at a few selected points. The automobile manufacturer itself has not taken a stake in ABB E-Mobility – though the linkage is very close.
“With the fast growth that we are seeing in electromobility, the need for the expansion of the corresponding charging infrastructure is increasing. We expect that the demand for chargers will continue to increase rapidly in the years to come,” says Lutz Meschke in his function as Porsche SE’s board member for investment management. However, Meschke is also CFO and deputy CEO of Porsche AG. “As a leading provider of charging solutions for electric vehicles, ABB E-mobility will participate significantly in this market growth,” Meschke added.
ABB E-Mobility said it will use the proceeds to continue implementing its growth strategy, “driven by both organic and M&A investments in hardware and software.”
ABB will cede more shares to investors in the future. “ABB remains committed to our strategy to separately list the business subject to constructive market conditions,” ABB CEO Björn Rosengren said. The company had initially planned to go public as early as the second quarter of 2022 but postponed it indefinitely in June 2022.
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