“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 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.
© 2019 CPI Financial. All rights reserved.