Renault CEO says Ampere IPO value could reach $10 billion
According to CEO Luca de Meol, Renault 's (EPA:RENA) Ampere electric vehicle division, set to go public through an initial public offering (IPO), might attain a valuation of around €10 billion ($10.8 billion).
During an interview with the Financial Times at the Munich IAA car show on Monday, De Meo suggested that Ampere's market worth could range from €8 billion — €10 billion when it goes public next year.
De Meo confirmed that the timeframe for Ampere's IPO, as it aims to become a “pure player” in electric vehicles and software, remains scheduled for next spring, contingent upon favorable market conditions.
«It's not me who sets the price. The only thing I can do is give some details, and that's what we're going to do next week, we're going to New York, we have to go around to investors,” said De Meo.
Last week, UBS suggested that Ampere might be worth between €3 to 4 billion when it goes public. But on Monday, de Meo told reporters that this figure doesn't quite capture the full value of everything Ampere brings to the table, including things like car platforms, advanced electronics and software, production facilities, engines, and the talented team of engineers.
Spinning off Ampere will provide product specialization and a „substantive and holistic response to potential competition from the Chinese and the Americans,“ added De Meo.
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