Mubadala shelves Cepsa stock listing plan

15 October 2018
Abu Dhabi sovereign wealth firm cancels IPO plan due to “adverse market conditions”

Abu Dhabi’s investment firm Mubadala has said it is not proceeding with its plans to list shares of Spanish energy company Cepsa, which it fully owns.

Mubadala’s Petroleum and Petrochemicals unit was in August reported to be mulling an initial public offering (IPO) of Cepsa, instead of a private stake sale, on the Madrid, Barcelona, Bilbao and Valencia stock markets.

Mubadala has now issued a statement saying it won’t be going ahead with the Cepsa IPO plan owing to “adverse market conditions”.

The firm had previously said it was considering the IPO on the basis of encouraging “feedback from potential investors”, despite “market conditions deteriorating significantly”.

Mubadala added it would revive efforts to stock list Cepsa when “conditions are favourable”.

Cepsa was previously listed on the Madrid market until 2011, when Abu Dhabi’s erstwhile International Petroleum Investment Company (IPIC) bought all of the firm’s shares. It is now estimated to be valued around $11.6bn.

Mubadala in March said it was considering a public listing, or sale of all, or a stake in Cepsa. The company has exploration and production interests in Latin America, North Africa and Asia.

Cepsa was awarded a 20 per cent stake by Abu Dhabi National Oil Company (Adnoc) in the Sarb and Umm Lulu block of Abu Dhabi’s offshore oil concession in February, for $1.5bn.

Cepsa is also working with Adnoc to jointly develop a linear alkylbenzene plant in the Ruwais downstream complex.

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