Cepsa sets price range for Spanish IPO that could raise as much as €2.02bn

Mubadala Investment Company is selling 25 per cent stake in the Spanish energy company

Cepsa is majority-owned by Abu Dhabi's Mubadala Investment Company through their petroleum and petrochemicals division.  AFP 

Cepsa, the Spanish energy company owned by Abu Dhabi’s strategic firm Mubadala Investment Company, said on Tuesday it expects to raise as much as €2.02 billion (Dh8.6bn) from the initial public offering of a 25 per cent stake in Spain.

The Madrid-based energy producer has set the offering price range of €13.10 to €15.10 per ordinary share of the company with par value of each share at €0.50, the company said in a statement on Tuesday. The selling shareholder of the company is offering 133,787,471 shares, representing a quarter of the company share capital in a deal that could give Cepsa a market cap between €7.01bn and €8.08bn.

“The share sale comprises a private placement to qualified institutional investors inside and outside of Spain,” Cepsa said in the statement. “As an exception, the selling shareholder is also offering shares to employees of the company and its Spanish subsidiaries that have their tax residence in Spain on the terms and conditions set out in the prospectus [of offering].”

The free float of the company may reach 28.75 per cent if the 15 per cent overallotment option granted to the Joint Global Coordinators on the deal is exercised. The final price of the share float will be determined on 16 October and admission to listing and trading on the Spanish stock exchanges is expected to take place on or about 18 October, the company said.

Cepsa was originally an investment of Ipic, which became part of Mubadala in a merger in 2017. Abu Dhabi has built its stake in Cepsa for years and bought shares held by France’s Total in 2011.

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Mubadala’s stake sale of Cepsa will see the Spanish energy firm trade on the Madrid, Barcelona, Bilbao, and Valencia Stock exchanges. Banco Santander, Citigroup, Merrill Lynch and Morgan Stanley are the joint global coordinators and joint bookrunners on the deal.

Barclays BNP Paribas, First Abu Dhabi Bank, Societe Generale and UBS are the additional joint bookrunners, while Banco Bilbao Vizcaya Argentaria and CaixaBank are the co-lead managers. Rothschild is acting as financial advisor to the company and the selling shareholder, according to the regulatory filing.

In March The National was first to report that Mubadala was seeking more stakeholders for Cepsa and exploring options to list the company in Spain this year.

“Today’s intention to float is a result of the strong foundations the business has built to become a well-established, integrated energy company and a global leader in a number of important product markets,” Musabbeh Al Kaabi, the chief executive of Mubadala’s Petroleum and Petrochemicals platform said in a statement last month. “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.”