Swiss technology firm ABB has received an additional 325 million Swiss francs from four investors, including Porsche SE, for its e-mobility division and charging station business.
This marks the completion of the second and final round of pre-IPO private placement, which raised a total of 525 million Swiss francs. The first round saw ABB receive 200 million Swiss francs with 8% of the shares ceded, while the second round saw 12% ceded, leaving ABB with 80% of the shares in ABB E-Mobility.
The new investors include Porsche, BeyondNetZero, GIC of Singapore, and Just Climate. Notably, Porsche is a holding company for the Porsche and Piech families’ shares in Volkswagen AG and Porsche AG, and invests in other companies in the mobility and industrial technology sectors. However, Porsche Automobil Holding SE has not taken a stake in ABB E-Mobility, though there is a close connection between the two.
See also: ABB E-Mobility expands US manufacturing footprint with investment in new EV charger facility
ABB CEO Björn Rosengren said: “We are delighted to see investors sharing our strong confidence and trust in the E-mobility business growth story. Furthermore, ABB remains committed to our strategy to separately list the business subject to constructive market conditions.”
“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.
See also: ABB E-Mobility Announces Terra Home Wallbox with Renewable Energy Feature
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 E-Mobility plan to utilize the funds from its recent investment round to further its growth strategy. The strategy includes both organic growth through hardware and software investments and strategic acquisitions.
In addition to these growth efforts, ABB has also indicated its intention to allocate more shares to its investors in the future. Despite previously planning to go public as early as Q2 2022, the company postponed the IPO indefinitely in June 2022. However, ABB CEO Björn Rosengren reassured that the company remains committed to its goal of separate listing the business when market conditions are favorable.