Renault stalls on Ampere’s IPO

The gloominess of stock markets has led to the cancellation of Ampere’s initial public offering, Renault’s 100% electric vehicles and software subsidiary.

To put it simply, the first valuation simulations of Ampere that reached Renault’s headquarters must have been particularly disappointing to cause such a backtrack. Remember that in September, Luca de Meo, CEO of Renault and Ampere, stated that the IPO could raise up to €10 billion to fund an ambitious development plan. Half of that today? It wouldn’t be impossible because demand for electric vehicles in Europe has fallen, and car manufacturers on the old continent are facing fierce competition from their Chinese rivals.

Ampere is intended to allow Renault to expand into business areas related to the new value chains resulting from the transformation of the automotive industry and mobility: electric vehicles and software, new mobility solutions, circular economy,… Ampere is at the heart of the Group’s transformation. An independent company that designs, develops, manufactures, and markets electric passenger vehicles under the Renault brand initially before opening up to other brands. Whether internal or external to Renault, the boundary is not yet defined, as evidenced by the collaboration with the Chinese group Geely.

Renault emphasized that it has enough liquidity to forgo the IPO. So much the better. In a statement, the Renault group announced that it would continue to finance the development of Ampere until the entity reaches profitability in 2025. “Renault’s strategic plan, Renaulution, is self-financed, and the results to be published for 2023 confirm the group’s ability to generate sustainable cash flow to fund its future, including the development of Ampère”, the statement notes.

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