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Abu Dhabi state investment vehicle Mubadala has called off plans to float 25% of its Spanish subsidiary Cepsa by end-2018. It only announced the plans on 17 September ( MEES, 21 September ).
A 15 October Cepsa statement blames “uncertainty in international capital markets” for the “delay.” “Recent market conditions deteriorated significantly,” Mubadala oil chief Musabbeh al-Kaabi says, adding that “we will consider returning to the market when we believe conditions are favourable.”
Mubadala planned an IPO of Cepsa shares on the Madrid, Barcelona, Bilbao and Valencia exchanges. At the time of the announcement, valuations of Cepsa centered on €10bn ($11.7bn), implying a 25% stake would raise $2.5bn. The official explanation for the change of mind looks spurious. The ‘IBEX 35’ index of Madrid-traded stocks did lose 5% of its value between Mubadala announcing and canning the Cepsa float; but key oil stock Repsol saw a fall of less than 3%, whilst Brent prices on 15 October where $2/B higher than on 17 September. (CONTINUED - 375 WORDS)