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
The deal includes the 600kt Acetic Acid plant and all associated third party activities on the site. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term supply agreement for vinyl acetate monomer.
The Supervisory Board of Borealis has accepted the decision of Lucrèce Foufopoulos-De Ridder, EVP Polyolefins, Circular Economy Solutions and Innovation & Technology to step down from her executive position at Borealis, and the Board of Borouge Pte effective 31 December 2023 to pursue other career opportunities.
Sidel has launched a new 100% rPET bottle base, StarLiteR, aiming to help carbonated soft drink (CSD) packaging producers embrace material circularity. StarLiteR allows CDS producers to switch to rPET bottle production easily and efficiently, while significantly reducing the impact on product quality or packaging integrity.