By Andrea Figueras
Renault said that it has decided to cancel the initial public offering of its electric-car unit Ampere partly due to equity-market conditions.
In 2022, the French automaker said that it intended to list the business and the trading debut was scheduled for spring 2024.
“Renault Group considers that the current equity-market conditions are not met to optimally pursue the IPO process in the best interests of Renault Group, its shareholders and Ampere,” the company said.
Furthermore, the company said that its strategic plan confirms Renault’s ability to generate sustainable cash flow to finance its future, which includes the development of the unit.
“Considering both current equity-market conditions and stronger cash generation, Renault Group has decided to cancel the Ampere IPO process,” it said.
Since November 2023, Ampere has operated as an autonomous business, the company said.
Renault will continue to fund Ampere until the unit reaches breakeven in 2025, it said, and backed all the targets announced during Ampere’s Capital Markets Day. “This decision has no impact on the financial guidance of Renault Group and its capital allocation strategy,” it said.
The company aims to make Ampere Europe’s top electric-vehicle producer by making more affordable cars than its peers. However, a public listing of Ampere raised eyebrows of some analysts’ due to uncertainty around demand for EVs, pricing and the prospect of diluting Renault’s value.
The IPO was seen by Chief Executive Luca de Meo and Chief Financial Officer Thierry Pieton as the best way to raise money and boost growth and profitability. In September, the CEO had estimated Ampere’s value in a range of EUR8 billion and EUR10 billion.
However, in November, Renault left the door open to the cancellation of the IPO, saying that it would only proceed if it felt comfortable that the market would sustain the right valuation.
Write to Andrea Figueras at andrea.figueras@wsj.com
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