Cepsa has announced its intention to apply for admission to trading of its common equity on the Madrid, Barcelona, Bilbao and Valencia Stock Exchanges, with at least 25% of the capital, during the fourth quarter of this year, as reported by the oil company.
Specifically, the transaction will include an offer to sell certain existing shares by Mubadala, the state fund of the emirate of Abu Dhabi and owner of 100% of Cepsa, to qualified international investors inside and outside of Spain.
Additionally, the fund intends to offer a limited number of shares initially to employees of Cepsa and its subsidiaries in Spain that meet certain requirements. These titles offered in the employee segment will represent approximately 0.20% of the total initial shares offered.
The minimum free float capital is expected to account for 25% after the offer, without taking into account possible over-allotments, as the case may be, thus complying with the minimum level required by the National Securities Market Commission (CNMV).
Banco Santander, Citigroup Global Markets, Merrill Lynch International and Morgan Stanley act as global coordinators and joint bookrunners in the offer; while Barclays Bank PLC, BNP Paribas, First Abu Dhabi Bank PJSC, Société Générale and UBS Limited act as additional joint bookrunners and Banco Bilbao Vizcaya Argentaria and CaixaBank BPI act as co-lead managers. Rothschild acts as exclusive financial advisor to the company and Mubadala in relation to the offer.
In addition, the selling shareholder is expected to grant one of the ‘managers’, or his agent, an option to purchase additional shares of the company, as a stabilization agent, to cover over-allotments of Shares in the Offer and short positions resulting from stabilization operations, if applicable.
Although the price range of the offer will be decided later, financial sources told Europa Press that Cepsa’s valuation could be around 10 billion euros, so the operation could be around 2,500 million euros, thus becoming 2018´s major listing on the Spanish Stock Exchange and one of the largest in the sector in recent years.
This offer to sell Cepsa shares is part of Mubadala´s policy of optimization in its portfolio of assets. The company has been present in the Spanish oil company shareholding for 30 years, becoming its sole owner since 2011.