Spain’s Cox Slides in Debut After Utility’s $185 Million IPO

Macarena Muñoz and Pablo Mayo Cerqueiro
·2-min read

(Bloomberg) -- Shares in Cox ABG Group SA fell in their Friday debut, after the Spanish water and energy firm raised €175 million ($185 million) in an initial public offering.

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The stock closed at €9.50, 7.1% lower than the IPO price of €10.23 per share. Some €10 million worth of shares changed hands on Friday, or about 6% of the offering size, with the bulk of the trades in the first half hour of trading.

Cox’s debut is Europe’s first IPO after Donald Trump’s victory in the US presidential election, which is adding pressure to the region’s longer-term prospects due to uncertainties around tariffs and other policies he may implement once in office.

Cox sold about 17 million shares at the bottom end of a marketed price range to IPO investors, following reductions in the size of the offering.

Bankers leaned on investors close to the company and the water and energy sectors — including family offices and other corporates — to lead the stock sale, with institutional investors playing a less prominent role, Bloomberg reported earlier on Friday. Local accounts were prominent in the deal, with international investors from countries like the UK and others also subscribing shares.

For Spain’s equity capital markets, Cox’s IPO came after bakery firm Europastry SA recently halted its debut plans for a second time this year. The country hosted Europe’s largest listing of 2024, Puig Brands SA, in the spring.

Cornerstone investors, which include existing shareholders and Dubai-based energy firm Amea Power, had committed to take more than 40% of the offer, according to a filing Tuesday.

Cox, which operates concessions in water and energy, has said it will put the proceeds toward new projects. It saw a 178% jump in revenue in the first six months of the year from a year earlier, while Ebitda grew 42%.

Banco Santander SA, Bank of America Corp. and Citigroup Inc. led the IPO, while JB Capital Markets, Alantra Partners SA and BTG Pactual also worked on the deal. The stock is trading on the Madrid Stock Exchange under the symbol COXG.

(Updates with closing share price, details of investor base)

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