Renault Samsung Denies Report of IPO to Finance Vehicle Development

Renault Samsung denies a newspaper report it plans to make an initial offering of public stock after the auto maker’s new CEO, Francois Provost, assumes his position in September.

“The article is not based upon true facts,” a spokeswoman tells Ward’s.

The Joongang Ilbo, a Korean-language daily newspaper distributed as supplement to the English-language International Herald Tribune, reports the IPO will finance both development of new RSM vehicles and expansion of the auto maker’s vehicle-assembly plant.

The article cites an unnamed RSM senior executive who says the auto maker will convert to a holding company and issue the stock when market conditions are favorable. It does not mention an amount.

The report says conversion of the corporate structure and listing for the IPO will be directed by Provost, who takes over as CEO on Sept. 1.

RSM has emailed an official denial of the report to all news media in Korea in the name of current CEO Jean-Marie Hurtiger.

Some analysts in Korea say RSM is beginning to lag in sales because its new-vehicle development program has not kept pace with competitors, and the auto maker rapidly needs to come up with new products.