The Renault group announced on Monday “cancel” the IPO of its brand new electric car subsidiary Ampere, which was planned for 2024 (AFP / Lou BENOIST)
The Renault group announced on Monday “cancel” the IPO of its brand new electric car subsidiary Ampere, which was planned for 2024.
The group, which has just emerged from a financial abyss, launched this subsidiary in November 2023 which brings together its electrical and software activities in France, with a total of 11,000 employees.
Ampere’s IPO was planned for spring 2024, with a valuation estimated between eight and ten billion euros, the same as Renault Group.
“Current market conditions are not met to continue the IPO process and best serve the interests of Renault Group, its shareholders and Ampere,” the group said in a press release on Monday.
In an electric car market which has exploded in recent years, the Renault subsidiary plans to sell around 300,000 vehicles in 2025 and a million in 2031, or half of what Renault sold worldwide in 2022.
Ampere is targeting an ambitious turnover of 10 billion euros from 2025, compared to 46 billion for the Renault group in 2022, and an annual growth rate of more than 30% between 2023 and 2031.
This IPO should allow the group to receive new money to accelerate its electric shift, and “give dividends more quickly to shareholders and the group”, underlined the general director of Renault, Luca de Meo, at the end of 2023.
But it had to seduce the stock market, where historic automobile manufacturers pale in comparison to their new electric competitors.
Renault management has already stressed that it does not necessarily need the Stock Exchange and that Ampere is already funded. Renault confirms that Ampere aims to reach financial balance in 2025.
The announcement of the cancellation of Ampère’s IPO “has no impact on the financial prospects of Renault Group”, assures the group’s management.