Renault Plans IPO Of Ampere EV Unit In Spring 2024, CEO Says

In the run-up to the initial public offering, Renault will separate Ampere from the rest of the company on Nov 1, Luca de Meo said.

In November 2022, Renault announced Ampere, a new EV and software standalone business unit named after French physicist and mathematician André-Marie Ampère.

At the time, Renault said Ampere would be “the first EV and software pure player born from an OEM disruption,” which was a pretty strong indication that an initial public offering (IPO) would follow eventually.

Well, Renault Group CEO Luca de Meo has confirmed that’s the plan earlier this week, announcing that Renault is looking to list its Ampere EV business on the stock market in the spring of 2024. As a preparatory step in the run-up to the IPO, de Meo told France’s BFM TV (via Reuters) that Renault targets November 1, 2023, for Ampere to be separated from the rest of the company.

“So we separate and then we see if we have the right conditions to enter the market,” Luca de Meo said, adding that spring 2024 would be the likely window for a listing. After the separation, Ampere will remain 100 percent in the hands of the carmaker, at least initially.

Ampere’s carveout is part of a broader overhaul at the French automaker that will see its EV business break away from Renault’s traditional combustion-engine operations as it transitions to electric vehicles.

The EV unit’s split from Renault has been a focal point of talks between the French automaker and Japanese partner Nissan, which are intertwined in a two-decade-old alliance. In late July, Nissan agreed to invest up to $663 million (600 million euros) in Ampere under a finalized deal to restructure the companies’ longstanding alliance. It remains to be seen what percentage of shares the Japanese company will acquire for this sum.

Gallery: 2024 Renault 5 teaser images

This will see Nissan become a “strategic investor” in Ampere and have a seat on its board. During previous talks about the reorganization of the Renault Nissan Alliance, it was agreed that the Japanese automaker could take a stake of up to 15 percent in Ampere.

In a joint statement, Renault and Nissan said they planned to complete the “definitive agreements” in the fourth quarter of 2023. As part of the deal, Renault and Nissan will modify their cross-shareholdings so that each company holds a 15-percent stake in the other.

Currently, Renault holds 43 percent of Nissan while Nissan holds 15 percent of Renault. Mitsubishi, in which Nissan holds a controlling stake of 34 percent, said it was also studying a possible stake in Ampere.

Ampere will be headed by Luca de Meo as CEO and will have around 10,000 employees, one-third of which will be engineers. The France-based company will develop, manufacture, and sell fully electric passenger cars featuring software-defined vehicle (SDV) technology under the Renault brand.

The EV unit’s lineup will include six electric cars before 2030, positioned in the fastest-growing segments in Europe covering 80 percent of the EV mainstream profit pool – the B and C segments.

In the subcompact segment, Ampere will have the new Renault 5 Electric and Renault 4 Electric, which was previewed by the 4Ever Trophy Concept in September 2022. Models in the compact segment will include the existing Megane E-Tech Electric, Scenic E-Tech Electric, and two as-yet-unannounced models.