ZURICH (Reuters) – 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 40-45% 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 25% to 30% 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 15% to 20% 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.
(Reporting by John Revill; Editing by Michael Shields)