(BFM Bourse) – On the eve of a major strategic point, the diamond group is rising strongly on the Paris Stock Exchange. The press information regarding the valuation of its potential entity dedicated to electrical technologies encourages investors to position themselves in the title.
Renault in pole position of the CAC 40. The diamond group signs this Monday the biggest rise in the flagship index of the Paris Stock Exchange, rising 4.1% to 31.75 euros around 2:20 p.m. On the whole of 2022, the title already takes almost 4% leaving a good distance to the CAC 40, which for its part lost 10% in the same period.
The action of the diamond manufacturer is carried this Monday by press information about its potential future entity dedicated to the commercialization and production of electric vehicles.
Initial Public Offering
Renault has been working since the beginning of this year on the constitution of this company, which could go public in the second half of 2023, bring together 10,000 employees and count Nissan, the Japanese ally of the diamond group, among its minority shareholders.
The construction company led by Luca de Meo will present the project for the creation of this company tomorrow on the occasion of Capital Market Day, that is, a day dedicated to investors.
According to information reported Friday night by Bloomberg, the diamond group would point to a significant valuation for this structure, the scope of which is not yet fully known. The press agency evokes an amount of 10,000 million euros, citing people close to the file.
Contacted by BFM Bourse, a Renault spokeswoman would not comment on this information.
This €10 billion figure exceeds the entire current market capitalization of Renault, which stands at around €9.4 billion. This amount also turns out to be higher than the estimates of several analysts. It should be noted that the Stifel bank had valued in a study in mid-October this entity dedicated to electricity at 7,000 million euros. UBS for its part reached a figure of 7,500 million euros. In a note published on Monday, the Swiss bank recalls that previous press reports suggested a valuation of between 3,000 and 3,500 million euros.
“Press information on the valuation of this electricity entity is supporting Monday’s action and encouraging investors to position themselves for tomorrow’s big event. However, 10,000 million euros seems frankly high”, comments a market intermediary.
Julien Marion – ©2022 BFM Bourse