Abu Dhabi Cancels Cepsa's IPO as Investors Recoil

Published October 16th, 2018 - 07:20 GMT
Mubadala said it would consider reviving the IPO. (AFP)
Mubadala said it would consider reviving the IPO. (AFP)

“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.

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