(BFM Bourse) – On the eve of an important strategic point, the diamond group is moving up sharply on the Paris Stock Exchange. Press information around the valuation of its potential entity dedicated to electrical technologies encourages investors to position themselves on the title.
Renault in pole position of the CAC 40. The diamond group signs the largest increase in the flagship index of the Paris Stock Exchange on Monday, rising 4.1% to 31.75 euros around 2:20 p.m. Over the whole of 2022, the title now takes almost 4% leaving the CAC 40 at a good distance, which for its part lost 10% over the same period.
The action of the diamond manufacturer is carried this Monday by press information on its potential future entity dedicated to the marketing and production of electric vehicles.
Initial Public Offering
Renault has been working since the beginning of this year on the constitution of this company, which could go public in the second half of 2023, bring together 10,000 employees, and count Nissan, the Japanese ally of the diamond group, among its minority shareholders.
The builder led by Luca de Meo is due to present the project to create this company tomorrow on the occasion of a Capital Market Day, that is to say a day dedicated to investors.
According to information reported Friday evening by Bloomberg, the diamond group would aim for a significant valuation for this structure, the scope of which is not yet fully known. The press agency evokes an amount of 10 billion euros, citing people close to the file.
Contacted by BFM Bourse, a Renault spokeswoman did not comment on this information.
This €10 billion figure exceeds Renault’s entire current market capitalization, which stands at around €9.4 billion. This amount also turns out to be higher than several analysts’ estimates. The Stifel bank had notably, in a study of mid-October, valued this entity dedicated to electricity at 7 billion euros. UBS for its part arrived at a figure of 7.5 billion euros. In a note published on Monday, the Swiss bank recalls that previous press information suggested a valuation of between 3 billion and 3.5 billion euros.
“The press information on the valuation of this electrical entity is supporting the action on Monday and encouraging investors to position themselves before tomorrow’s big event. However, 10 billion euros seems frankly high”, comments a market intermediary .
Julien Marion – ©2022 BFM Bourse
Are you following this action?
Receive all information about RENAULT in real time: