Cox IPO, center of attention after delaying it and setting the price to the minimum

All eyes are on Cox. Doubts are running through the Spanish stock market at a time when the energy infrastructure and water treatment group plans to debut this Friday with a market capitalization of around 805 million euros, after successfully completing the process of capital increase.

After several adjustments and delays, since initially the debut on the Spanish market was scheduled for this Thursday, Cox set its IPO at a price of 10.23 euros per share, the minimum amount of the price range it was considering – 10.23 euros to 11.38 euros. by title.

The company founded and chaired by Enrique Riquelme managed to underwrite its offer of around 175 million euros, with a “green shoe” of around 10 million additional euros. The listing of the group took place in a very complex market environment, although Cox will debut on the stock exchange with the support of national and international investors, highlighting the presence of very geographically diversified global investors – with a majority presence. in the UK, USA and the Middle East.

In a statement, the company indicated that this culminating process “represents a boost to the business plan for the years to come, confirming the good positioning of the entity at a global level, as well as the opportunity for growth”.

The company closed its accounts on Wednesday, reaching enough investors to cover its public offering (IPO) of shares with which it will debut on the continuous market. On Tuesday, the company also decided to reduce the amount of its IPO to around 175 million euros, compared to more than 200 million euros initially planned.

In a supplement to the prospectus, the company changed the size of its IPO, offering between 15.37 million and 17.10 million ordinary shares, compared to the initial 17.57 million and 19.55 million new shares. . The group has also decided to reduce the size of the over-allotment option, known as the “green shoe”, in its offer, from the 15% initially planned to a maximum of 10% of the offer.

At the beginning of October, Cox, whose subsidiary Cox Energy is already listed on BME Growth, informed the stock market regulator of its intention to launch on the market. It will now do so on the Continuous Market with the holding company, formerly Coxabengoa, after having integrated the productive activities of the Abengoa group, and which has been renamed Cox.

That of Cox this week will be the second debut on the Spanish market, after that of this Tuesday of Inmocemento, the new company headquartered in Barcelona and which brings together the real estate and cement activities of FCC. Currently, the president and founder of the group, Enrique Riquelme, is the main shareholder with 77.85% of the capital, and after the offer he will reduce his position to 63.1%.

“We are delighted to reach this important milestone, today’s announcement represents an important step in the company’s growth trajectory. Despite the difficulty of the IPO market, the investor demand reflected in the offering price is proof of the value investors see in our strategy and trajectory. , as well as in future growth prospects in the water and energy sectors,” Riquelme underlined.

The income will be used to finance part of the equity requirements for medium-term projects. This includes the expansion of the SEDA and AEB desalination plants, the water concessions identified as opportunities which are awarded to achieve a water portfolio of two million cubic meters/day of overall capacity, the São Paulo transmission concessions and Bahía, identified transportation concessions as well as opportunities to reach 575 kilometers of transportation concessions, as well as some projects in the field of energy production.

In the prospectus, Cox indicated that in the near term it intended to allocate the cash flow generated to continue growing the business and that it did not plan to distribute dividends over the next few years. next three years. Thus, at the date of the prospectus, the group adds that it has not yet established a specific dividend policy and that at the end of this three-year period, it will evaluate the advisability of implementing it, based on its future results and its financing needs. .

The company had already announced the commitment of investors to acquire approximately 30% of the offering. A company from the United Arab Emirates (Amea Power) -30 million euros-, a bank from Morocco (Attijariwafa Bank) -for a maximum of 5 million euros- and the Spanish company Corporación Cunext -20 million euros- would thus join the founders in purchasing shares in their jump to the market. In addition, Enrique Riquelme committed 15 million euros and Alberto Zardoya committed others between 5 and 10 million euros.

In 2023, Cox recorded a gross operating profit (Ebitda) of 103 million euros and revenues which reached 581 million euros. The group’s positive adjusted operating cash flow amounted to €37.4 million for the year ended December 31, 2023.

In the first half of this year, the company achieved a turnover of 306 million euros and an Ebitda of 81 million euros and recorded a strong increase in its “backlog” – signed contracts awaiting completion. execution-, which amounted to 1,600 million euros, with an estimated Ebitda margin of 11.7%.