Cepsa Postpones Bumper IPO, Blames Market Rout

By Isla Binnie
Monday, October 15, 2018

Spain's Cepsa postponed what would have been the largest oil company listing in a decade on Monday, the latest IPO to succumb to a global sell-off in equity markets.

Cepsa's owner, Abu Dhabi state investor Mubadala, had planned to raise about 2 billion euros ($2.3 billion) by selling 25 percent of Cepsa.

Markets have been roiled by anxiety about a potential trade war between the United States and China, uncertainty over Britain's exit from the European Union, a global economic slowdown and higher U.S. interest rates.

Spain's IBEX stock market index registered its biggest weekly fall since February at Friday's close, and remains at two-year lows. The index opened down 0.15 percent on Monday.

"The most recent international economic developments have sowed considerable uncertainty in international capital markets," Cepsa said in a statement.

"In this scenario, the appetite of international investors has retracted significantly, along with their willingness to participate in stock market listings such as the one being carried out by Cepsa," it said.

Mubadala will consider returning to the stock market when conditions become more favorable, Musabbeh Al Kaabi, chief executive of Mubadala's Petroleum and Petrochemicals platform, said.

"The feedback from potential investors reinforced our view of Cepsa's value and the strengths of the underlying business," Al Kaabi said in a statement.

Cepsa's float would be the biggest by an oil company in terms of proceeds since Brazil's OGX Petroleo e Gas in 2008.

IPO plans globally have been hit by market turmoil. Last Friday alone, Tencent Music Entertainment, the owner of China's most popular music app, delayed a U.S. share offering, sources said, and Portuguese holding company Sonae cancelled plans to list shares in food retail unit Sonae MC.

Dutch car leasing company Leaseplan also shelved plans to float in Amsterdam, blaming a global sell-off in equity markets.


($1 = 0.8653 euros)

(Reporting by Isla Binnie; editing by Paul Day/Jason Neely/Susan Fenton)

Categories: Finance Europe Oil Energy Industry News

Related Stories

ConocoPhillips, CNOOC Put Penglai Field off China Into Full Operation

Fugro Secures India Deepwater Drilling ROV Contract

Vantris Energy Secures Petronas’ Offshore Drilling Work Orders

ADNOC, SLB Roll Out AI Platform Across More Than 120 Drilling Rigs

Oil Rises as Uncertainty Clouds US-Iran Peace Talks

Keppel Launches $2.9B Program to Monetize Legacy Offshore Drilling Rigs

Serica Energy Agrees $194M Pharos Energy Acquisition

Chevron Enlists Velesto’s Jack-Up Rig for Drilling Job off Malaysia

Oil Surges 3% on Renewed US-Iran Strikes

IEA Expects Gradual Hormuz Recovery, Oversupplied Market in 2027

Current News

ConocoPhillips, CNOOC Put Penglai Field off China Into Full Operation

Mermaid Maritime Expands Into US Offshore Market

ONGC Nears Venezuela Operatorship Deals, Regains Russia’s Sakhalin-1 Stake

Fugro Secures India Deepwater Drilling ROV Contract

Vantris Energy Secures Petronas’ Offshore Drilling Work Orders

ADNOC, SLB Roll Out AI Platform Across More Than 120 Drilling Rigs

Oil Rises as Uncertainty Clouds US-Iran Peace Talks

India’s ONGC to Allocate Half of New Oil Storage to Strategic Reserves

Subsea7 Lands ‘Sizeable’ Contract for Work Offshore Brunei

FPSO for Azule Energy’s Angola Offshore Field Starts Taking Shape in China

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com