Renault's Electrifying Leap - Ampere IPO Could Hit $10.8B Valuation: Report - NISSAN MOTOR LTD S/ADR by N

Renault SA's (OTC:RNLSY) (OTC:RNSDF) CEO Luca de Meo reportedly said its new electric vehicle division Ampere could bring an initial public offering worth up to €10 billion ($10.75 billion) when it floats in the first half of 2024.

The exact pricing of Ampere's initial public offering has yet to be confirmed, the Financial Times reported, citing a statement from de Meo at the Munich auto show.

However, de Meo told FT that the business could be worth "eight, nine, 10 billion [euros]" when it lists.

On July 26, both Nissan Motor Co. (OTC:NSANY) and Renault announced their restructured alliance, and a final deal contemplated by the binding framework agreement was executed and announced on February 6, 2023. As part of the cooperation, Nissan has committed to invest in Ampere up to Є600 million, consistent with being a strategic investor in Ampere and securing a board seat.

The report added that Europe's car industry is bearing the brunt of some over-cautious investors.

Also Read: Renault Eyes 'Very Small And Reduced' Deal With Nissan: Report

"If European investors care about the future of Europe they better put money into this, instead of putting question marks all over the thing," said de Meo to FT.

The Ampere spin-off will provide a "substantive and holistic response to potential competition from the Chinese and the Americans," the report mentioned.

Price Action: RNLSY shares closed lower by 6.7% to $7.52 on Friday.

NSANYNISSAN MOTOR LTD S/ADR by Nissan Motor Co., Ltd.

$4.19-1.18%

Overview

RNLSYRENAULT SA UNSP/ADR by Renault SA

$6.16-2.07%

RNSDFRENAULT ORD PAR by Renault SA

$40.72-%

Market News and Data brought to you by Benzinga APIs

To add Benzinga News as your preferred source on Google, click here.