Spanish energy and Water Utility Cox raises $329 Million via share listing
Cox Energy, a Spanish water and energy utility, announced on Monday that it plans to raise $300 million ($329 millions) by selling new shares via an initial public offer on the Madrid Stock Exchange.
The IPO funds will allow Cox to continue expanding after last year it acquired Spanish engineering group Abengoa which had heavily borrowed to fund a aggressive expansion of clean energy.
Enrique Riquelme, Cox chairman, said that the transaction would allow Cox to continue executing its growth strategy and consolidate Cox's position as a leader in renewable energy transmission and generation.
Two sources familiar with the deal said that the company would use the proceeds from the IPO to expand into regions identified as in need of water infrastructure, including the south United States, Chile and Morocco, as well as the Middle East.
Sources said that Riquelme would continue to control the company. Riquelme owns 77.85% Cox.
According to the company, the Zardoyas own 17.50%, and the local pension fund Mutualidad de Arquitectos Tecnicos y Quimicos holds the remaining 4.65%.
Cox didn't specify how much it wanted to sell nor did it provide a valuation of the entire company. However, stock market regulations in Spain require companies to list at least 25% their capital as part of an initial listing.
Cox earned 103 million Euros in 2023 before taxes, interest, depreciation, and amortization on revenues of 581 millions euros.
Cox stated that Banco Santander and Bank of America are working together as global coordinators.
Cox is following the frozen-bakery manufacturer Europastry based in Barcelona, which will list its shares this week as part of a deal valued at 1,57 billion euros.
In May, the stock price of Barcelona-based beauty company Puig rose after an improved market sentiment.
(source: Reuters)
