Sector News

Spanish energy company Cepsa ready to launch listing in September -sources

August 22, 2018
Chemical Value Chain

The Abu Dhabi owner of Spanish energy company Cepsa is expected to opt for an IPO instead of a private stake sale and plans to launch the listing as early as September, according to four banking sources familiar with the deal.

While parallel negotiations for a potential sale are ongoing, sources said a Madrid listing was the more likely option.

Two of the sources said the business would be valued at around 10 billion euros ($11.44 billion). Once companies announce an intention to float the listing usually takes place a few weeks later.

Cepsa, an oil refiner and distributor, is owned by Abu Dhabi state investor Mubadalah. A Mubadala spokesman said in March it was considering a public listing or sale of all or a stake in the company, which also has exploration and production interests in Latin America, north Africa and Asia.

Mubadala declined to comment.

After years of stake-building in Cepsa, the Abu Dhabi sovereign wealth fund bought the remaining shares it did not already own from France’s Total in 2011, valuing the Spanish company at around 7.5 billion euros.

Finance industry sources said they expected a flurry of new listings in September in Europe after the summer lull as companies take advantage of favourable market conditions which might not last.

Proceeds from initial public offerings (IPO) of European firms rose 35 percent in the first half of the year to almost $30 billion, according to Thomson Reuters data.

Packager SIG Combibloc and chip factory builder Exyte are both on track to launch IPOs in the coming weeks, sources have previously said.

One of the sources said Cepsa’s owners had considered London for the listing but chose Madrid, which has fewer comparable companies but has investors which already know Cepsa because it was previously listed there.

In the first half of 2018, Cepsa reported an IFRS net profit of 441 million euros compared to 412 million euros in the first half of 2017. Revenue in the first half of 2018 was 12.4 billion euros, according to a statement from the company on its website.

Mubadala’s chief executive officer said last year it was lining up new overseas investments and might also sell or reduce some of its existing stakes in companies. ($1 = 0.8744 euros)

By Dasha Afanasieva, Clara Denina, Ben Martin

Source: Reuters

comments closed

Related News

September 25, 2022

France and Sweden both launch ‘first of a kind’ hydrogen facilities

Chemical Value Chain

France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).

September 25, 2022

NextChem announces €194-million grant for waste-to-hydrogen project in Rome

Chemical Value Chain

The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.

September 25, 2022

The problem with hydrogen

Chemical Value Chain

At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?