(Bloomberg) -- Spanish water and energy firm Cox ABG Group SA is guiding investors that its initial public offering will be priced at the bottom end of the range, according to terms of the deal seen by Bloomberg News.
The deal is likely to price at €10.23 per share, according to the terms. The company has reduced the size of the offering for a second time to €175 million ($186 million), the terms showed.
Cox had marketed the shares from €10.23 to €11.38 apiece, according to an earlier filing. Arrangers for the sale will continue taking orders from investors until 6 p.m. in Spain.
Cornerstone investors, which include existing shareholders and Dubai-based energy firm Amea Power, have committed to take more than 40% of the offer, according to a filing Tuesday.
The stock is set to trade on the Barcelona, Bilbao, Madrid and Valencia stock exchanges later this week under the symbol COXG.
Last month, Cox set out to raise up to €270 million through the share sale. It launched the transaction last week with a target of €200 million after getting regulatory approval, before downsizing it further with the Tuesday announcement.
A listing may come as a shot in the arm for the Spanish market, which recently saw bakery firm Europastry SA halt its debut plans for a second time this year. The country hosted Europe’s largest listing of 2024 — Puig Brands SA — in the spring.
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. are leading the IPO, while JB Capital Markets, Alantra Partners SA and BTG Pactual are also working on the deal.
(Updates to add details on cornerstone investors in fourth paragraph.)
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