Cepsa prepares for large Spain listing

Energy company to launch IPO in fourth quarter of 2018

Energy company Cepsa announced yesterday it plans to float its shares on Spanish stock exchanges this year, in what is expected to be one of the largest listings in Spain in over a decade.

The Spain-based company, which is owned by Abu Dhabi’s Mubadala Investment, will list at least 25 per cent of its total share ownership in the Initial Public Offering (IPO) set to take place in the fourth quarter of 2018.

Mubadala did not disclose the value of the listing or the valuation of the company, but said the IPO is expected to be the largest one in the oil industry in 2018. Reuters reports citing anonymous banking sources familiar with the deal said the business would be valued at around €10 billion (Dh42.6 billion).

This places the IPO value at at least €2.5 billion.

The listing marks Mubadala’s first international IPO, and will be on the Madrid, Barcelona, Bilbao, and Valencia Stock Exchanges, which are linked through an automated quotation system.

The announcement follows a Reuters report in late August that said Mubadala is expected to opt for an IPO of Cepsa instead of a private stake sale. The report said there were parallel negotiations for a potential sale ongoing, but that a listing was the more likely option.

In the statement yesterday, Musabbeh Al Kaabi, chief executive officer of Mubadala’s petroleum and petrochemicals division, said the plan to float Cepsa shares is “is a result of the strong foundations the business has built to become a well-established, integrated energy company.”

€10b

is how much the business is valued at, report says

‘Strategic fit’

“We are committed to delivering the IPO with a listing on the Spanish Exchanges as a natural and strategic fit for Cepsa that will provide wider access to capital markets to support financial flexibility,” he added.

The IPO is still subject to market conditions, Mubadala said, and a price range for the listing is yet to be decided.

Citigroup, Bank of America Merrill Lynch, Banco Santander SA, and Morgan Stanley are joint global coordinators and bookrunners of the deal, according to a separate statement from Cepsa.

Mubadala became the sole owner of Cepsa in 2011 when it acquired all outstanding shares from France’s Total.