Spanish utility Cox priced shares at 10.23 euro in IPO, implying a market cap of $849 mln

The Spanish water and clean energy utility Cox has set its final price at 10.23 euros per share. This implies a market cap of 805 millions euros.

The company announced late on Wednesday that the price had been set at the lower end of the range between 10,23 euros and 11,38 euros.

According to documents sent to the Spanish stock exchange regulator, the share price came after the company lowered its IPO size to around 175 million euro from about 200 million euros Tuesday.

It said that if Santander was granted 10 million euros in shares as an over-allotment (as a "stabilising manger" for the offering), the company would likely raise a total amount of 185 millions euros.

Cox originally stated that it would price new shares on a Tuesday.

Investors were worried about a possible dismantling by the United States of support for renewable energy and climate policy. The company announced its IPO on Nov. 5. This was before shares in European clean-energy groups dropped following Donald Trump's victory.

Enrique Riquelme, Cox's executive chair, said that despite a difficult IPO market, investor demand reflected by our pricing reflects the value investors place on our strategy, track record, and the growth prospects we have in the water and energy sectors.

Sources close to the process said that Cox reduced its IPO size to adjust to the lower market appetite.

Riquelme owned 77.85% Cox shares before the IPO, and he said he planned to keep more than 60% of the company after the offering.

The company said that it would use funds raised through the IPO in part to finance equity requirements for energy projects, and to invest into water concessions. Corina Poans, Inti Landauro, Varun H. K. and Corina Pons reported on the story.

(source: Reuters)