Spanish oil firm Cepsa valued at $11.6 billion ahead of IPO

Spain’s Cepsa is selling a 25% stake in an initial public offering (IPO) that values the company at around US$11.6 billion, making it one of the largest oil firm flotations in a decade.

The company’s owner – Abu Dhabi state investor Mubadala – will list the shares on four Spanish exchanges – Madrid, Barcelona, Bilbao and Valencia.

“The minimum free float of shares after the offering is expected to be 25% prior to any over-allotments, in compliance with the minimum threshold set by the CNMV (Comision Nacional del Mercado de Valores [Spain’s securities markets commission]),” said Cepsa.

The offering is expected to take place during the final quarter of 2018, with the price range and implied market value still to be decided, the firm added.

Cepsa is one of the largest Spanish oil players, along with fully-listed Repsol, and operates two refineries in the country. The company also has oil fields in Latin America, North Africa and Southeast Asia with a total production of more than 175,000 barrels a day.

Oil market analysts are predicting an increased number of IPOs amongst oil and gas firms after a recovery in oil prices over the last few months.