Renault SA said early feedback from potential investors in its planned initial public offering of its electric-vehicle unit has been positive, amid record first-half earning for the French carmaker.
(Bloomberg) — Renault SA said early feedback from potential investors in its planned initial public offering of its electric-vehicle unit has been positive, amid record first-half earning for the French carmaker.
Chief Executive Officer Luca de Meo, leading Renault through a turnaround for the past three years, has met with over 30 potential investors on its share sale plan for Ampere. The unit is set for a possible listing during the first half of next year, slightly later than an earlier timeline.
“We spoke with all the big guys around the world,” de Meo told reporters on a call Thursday. “They understand that Ampere is a very substantial story.”
Renault delayed the timing of the share sale last month after Tesla Inc.’s aggressive price cuts and market share gains by lower-priced Chinese EVs weighed on sentiment. Still, de Meo got crucial backing for Ampere on Wednesday, when alliance partner Nissan Motor Co. said it would invest as much as €600 million ($668 million) in the venture.
Nissan will have a role in Ampere’s governance through a board seat and the partners will work together on developing EVs, he said.
“It’s further evidence that the new deal we made with Nissan is meant to be for the future and not just closing a page on our past,” de Meo said, following the pair finalizing steps to rebalance their long-standing alliance that’s been a source of tension over the years.
Junior alliance partner Mitsubishi Motors is expected to reveal its investment in Ampere in the coming weeks. Qualcomm Inc., another cornerstone investor, will ensure availability of chips for technology innovations and has put many engineers on the project.
“Ampere is a multi-brand platform,” de Meo said. “It’s there to sell technology to other brands, it’s not only about Renault.”
Renault plans to market the Ampere IPO with a free-float of well over 10% of shares, meaning there are no plans to take on further anchor investors.
Earlier Thursday, the manufacturer reported a record first-half operating margin of 7.6% that exceeded guidance and was ahead of Volkswagen AG, Europe’s biggest carmaker.
The company remains focused on efforts to produce more affordable EVs, with a target of 40% cost reduction on a car-by-car basis in next-generation vehicles by 2027.
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