Renault has announced the cancellation of the initial public offering (IPO) of its electric-car unit Ampere due to unfavorable equity-market conditions. The French automaker had previously planned to list the business in 2022, with the trading debut scheduled for spring 2024.
According to Renault, the decision to cancel the IPO was made considering both the current equity-market conditions and the company’s ability to generate sustainable cash flow to finance its future plans, which include the development of the unit.
Since November 2023, Ampere has been operating as an autonomous business. Renault will continue to fund Ampere until it reaches breakeven in 2025 and fully supports all the targets announced during Ampere’s Capital Markets Day. The cancellation of the IPO has no impact on Renault Group’s financial guidance and capital allocation strategy.
Renault aims to become Europe’s top electric-vehicle producer through Ampere by offering more affordable cars than its competitors. However, concerns around demand for EVs, pricing, and the potential dilution of Renault’s value led to skepticism among analysts regarding the public listing of Ampere.
The IPO was seen by Renault’s CEO, Luca de Meo, and CFO, Thierry Pieton, as the optimal way to raise funds and drive growth and profitability. In September, the CEO estimated Ampere’s value to be between EUR8 billion and EUR10 billion. However, in November, Renault indicated that it would only proceed with the IPO if market conditions were favorable for achieving the right valuation.
