Renault’s CEO, Luca De Meo, revealed in an interview that a considerable portion of the planned electric vehicle spinoff from the company could be available in the free float on the stock market. While declining to comment on additional strategic investors beyond Qualcomm and Nissan, De Meo emphasized the importance of retaining a majority stake.
In an interview with the business daily La Tribune, De Meo stated, “We need to leave some free float because we still want to retain a significant majority ourselves.” He further highlighted that their goal was to establish a higher percentage of free float, ensuring adequate liquidity while maintaining minority ownership. Drawing a parallel, De Meo referenced Porsche, which offered a 10% free float during its remarkable $72 billion stock market debut in Germany last year, the country’s largest since 1996.
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Renault’s future electric vehicle unit, Ampere, has been estimated to have a potential valuation of up to 10 billion euros ($10.96 billion) by industry sources. As for the timing of the planned initial public offering (IPO), De Meo confirmed that the intention remains to proceed with the listing “from the end of 2023.”
When questioned about recent turmoil at Nissan, Renault’s long-standing alliance partner, following revelations of an investigation into allegations of surveillance by Chief Executive Makoto Uchida against his deputy, De Meo chose not to comment on Nissan’s governance directly. Instead, he expressed confidence in the progress of joint projects and emphasized the establishment of a solid and excellent relationship with Makoto Uchida.
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Renault’s consideration of a significant free float for its electric vehicle spinoff demonstrates the company’s strategic approach to capitalizing on the growing demand for electric vehicles. By retaining a majority stake while ensuring liquidity through a minority free float, Renault aims to strike a balance that attracts investors and strengthens its position in the burgeoning electric vehicle market. The planned IPO, expected to take place from the end of 2023, could be a pivotal moment for Renault’s electric vehicle ambitions.
