2024-01-29 17:01:00
By Le Figaro with AFP
Published 57 minutes ago, Updated 31 minutes ago
The IPO was planned for this year 2024. JeanLuc / stock.adobe.com
The automobile group believes that “current market conditions are not met to pursue” this project.
The Renault group announced on Monday “Cancel” the IPO of its electricity subsidiary Ampere, which was planned for 2024. “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.
Moreover, “the results expected for 2023 confirm the group’s ability to generate cash sustainably to finance its future (including the development of Ampere)”specifies Renault. “Over the last few semesters, Renault Group has significantly improved its performance to reach levels exceeding its initial expectations. This offers the group greater flexibility and all the room for maneuver it needs.continues Renault.
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.
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Accelerate the electric shift
This entry was to allow the group to receive new money to accelerate its electric shift, and “give dividends to shareholders and the group more quickly”, had underlined at the end of 2023 the general director of Renault, Luca de Meo. But it had to seduce the stock market, where historic automobile manufacturers pale in comparison to their new electric competitors. Renault management was already emphasizing that it did not necessarily need the Stock Exchange and that Ampere was already financed.
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 a figure ambitious business 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.
Renault confirms that Ampere aims to achieve financial balance in 2025. This decision “has no impact on the financial outlook of Renault Group, nor on its capital allocation strategy”manages the group.
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