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PARIS: Renault’s shares rose as much as 4.5% at Tuesday’s open after the French automaker ditched plans to list its electric vehicle business Ampere, citing sluggish stock market conditions.
Renault said on Tuesday it had enough cash to do without the stockmarket listing and would continue to fund the development of Ampere until it reaches break-even in 2025.
“Cancellation of the Ampere IPO should be positive for current shareholders as it minimises upfront dilution ..and removes a layer of complexity in the investment case,” Jefferies analysts said in a note.
Analysts at Berenberg noted that Renault stressed that “record margins and strong cash generation are likely to be released at the company’s full-year results on 15 February….This makes capital raised from a potential IPO of Ampere as less necessary,”
Renault’s shares were up 1.68% at 0836 GMT.
Renault said on Tuesday it had enough cash to do without the stockmarket listing and would continue to fund the development of Ampere until it reaches break-even in 2025.
“Cancellation of the Ampere IPO should be positive for current shareholders as it minimises upfront dilution ..and removes a layer of complexity in the investment case,” Jefferies analysts said in a note.
Analysts at Berenberg noted that Renault stressed that “record margins and strong cash generation are likely to be released at the company’s full-year results on 15 February….This makes capital raised from a potential IPO of Ampere as less necessary,”
Renault’s shares were up 1.68% at 0836 GMT.
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