The offering would have valued Spain-based Cepsa at between $8.1bn and $9.3bn
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.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.