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

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Offshore Energy and Boosting the Energy Efficiency of Water Processes

India's ONGC Set to Retain 20% stake in Russia's Sakhalin-1 Project

Russia's Lukoil Takes Up Gunvor’s Offer for Foreign Assets

ABL Secures Rig Moving Assignment with India's ONGC

Eni-Petronas Gas Joint Venture Up for Launch in 2026

Seatrium Secures ABS Backing for Deepwater FPSO Design

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Current News

Vantris Energy Lands Petronas Job on Malaysia’s Offshore Fields

Murphy Oil Appraisal Well Boosts Resource Outlook at Field off Vietnam

Viridien Kicks Off Multi-Client Reimaging Program off Malaysia

Petrovietnam Agrees First-Ever LNG Term Deal with Shell

ADNOC Takes FID on SARB Deep Gas Project Offshore Abu Dhabi

Jereh Group Delivers Oil Separation Systems for Petrobras’ FPSO Units

Offshore Rig Outlook: As 2025 Challenges Fade, Path Ahead Brightens

Offshore Energy and Boosting the Energy Efficiency of Water Processes

Low Demand, High Supply Keeps Asia LNG Spot Prices Flat

Following Big Loss in 2025, Oil Steadies

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