Mubadala to list 25% of Cepsa on Spanish stock exchange

17 September 2018 11:02 Source:ICIS News

LONDON (ICIS)--Abu Dhabi's sovereign wealth fund Mubadala, which fully controls Cepsa, announced on Monday its intention to float 25% of the Spanish energy and petrochemicals major on the country’s stock exchange before the end of the year.

Together with fully-listed Repsol, Cepsa is one of the largest Spanish oil players, operating two refineries in the country.

Within petrochemicals, Cepsa has operations in Spain, Germany, China, Indonesia, Canada, Nigeria and Brazil.

"The minimum free float of shares after the offering is expected to be 25% prior to any over-allotments, in compliance with the minimum threshold set by the CNMV (Comision Nacional del Mercado de Valores [Spain's securities markets commission])," said Cepsa.

“The offering is expected to take place during the fourth quarter of 2018.”

The shares will be listed in four Spanish exchanges – Madrid, Barcelona, Bilbao and Valencia.

Mubadala, the result of the 2017 merger between Mubadala Development Company and the International Petroleum Investment Company (IPIC), fully acquired Cepsa in 2011 and took the company private.

According to analysis compiled by Bloomberg, the minimum 25% of free float on the stock exchange could fetch up to €3bn, which would make it one of the largest crude oil initial public offering (IPOs) in a decade.

That price tag would value Cepsa at around €10bn, which would hand Mubadala significant gains from the €7.5bn the company was valued at in 2011, according to the same analysis.

It mainly produces surfactants – including linear alkylbenzene (LAB), linear alkylbenzene sulphonic acid (LABSA), n-paraffin – and fatty alcohol products, including fatty alcohols, fatty acids, glycerine and fatty alcohol derivatives.

The company also procures phenol, cumene, acetone and derivatives, as well as some solvents.

“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,” said Musabbeh Al Kaabi, CEO for petroleum and petrochemicals at Mubadala.

Pictured: Cepsa's headquarters in Madrid
Source: Cepsa

By Jonathan Lopez