The IPO of Ampere, Renault’s electric car subsidiary, enthusiastically announced for 2022, will not finally see the light of day this spring, the group has announced.

This strategic shift raises questions about the electric sector, which, in addition to Tesla, is struggling to attract investors in conditions where IPOs have stagnated for almost two years.

Renault justifies this choice by the difficult economic context

In a press release, Renault argues for this decision by the fact that “current market conditions” which do not facilitate the continuation of the IPO process, thus claiming to best serve the interests of the group, its shareholders and Ampere. This was emphasized by Renault CEO Luca de Meo the company did not need fresh capital to finance the development of Ampereensuring that “We have the money to promote the project as it is” and compensate for any losses.
The electric vehicle market in the United States appears to be a key factor in this decision less dynamic sales than in Europe despite a record 2023 for electric cars in France. Reasons cited include higher prices than electric vehicles, insufficient charging infrastructure in some regions of the world and range that customers perceive as limited, particularly in certain markets such as the United States.

Ampere, what exactly is it?

The Ampere subsidiary, launched in November 2023, combines Renault’s electrical and software activities in France, with a total of 11,000 employees. Its valuation, estimated at between eight and ten billion euros, was expected to provide new funds to accelerate Renault’s transition to electricity and faster dividends for shareholders. Ampere’s forecasts remain unchanged despite the cancellation of the IPO. The subsidiary plans to sell around 300,000 vehicles in 2025 and one million in 2031. accounts for half of Renault’s global sales in 2022.
Even if Renault’s decision to limit the financial markets will not affect the financial prospects of the group, it does not call into question the planned investment of Nissan and Mitsubishi in Ampere, the investment of Qualcomm was dependent on the IPO on the Sotck exchange.

If the microchip giant wants to keep its financial commitment, discussions will be needed to identify an alternative.

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