Abu Dhabi shelves plans for Spanish oil refiner Cepsa's IPO

The offering would have valued Spain-based Cepsa at between $8.1bn and $9.3bn
Abu Dhabi shelves plans for Spanish oil refiner Cepsa's IPO
Mubadala’s preference was to pull the IPO rather than accept a lower valuation, people familiar with the matter said last week.
By Bloomberg
Mon 15 Oct 2018 11:15 AM

Abu Dhabi shelved plans for an initial public offering of a 25 percent stake in Spanish oil refiner Cepsa as investors balked at the valuation amid a stock market rout.

“Recent international economic developments have created uncertainty in international capital markets,” Cepsa, which is controlled by Abu Dhabi’s state-owned Mubadala Investment Co. The final price for the IPO was set to be decided tomorrow.

Bankers scrambled last week to save the IPO, expected to the largest by a European oil company in more that a decade, as investors balked at Mubadala’s valuation. The sale coincided with a rout in the global equity market, with European stocks down to the lowest since 2016 levels.

The offering would have valued Spain-based Cepsa at between 7 billion euros ($8.1 billion) and 8.1 billion euros ($9.3bn).

Mubadala’s preference was to pull the IPO rather than accept a lower valuation, people familiar with the matter said last week.

Mubadala said it would consider reviving the IPO.

“As a long-term investor, we will consider returning to the market when we believe conditions are favorable,” Mubadala Chief Executive Officer Musabbeh Al Kaabi said in an emailed statement.

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