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

An employee checks the rear of photovoltaic panels at the Repsol SA Valdesolar solar park in Badajoz, Spain, on Wednesday, March 29, 2023. Repsol is targeting 20 gigawatts of installed renewable capacity by the end of the decade and has earmarked as much as €6.5 billion for low-carbon projects in its 2021-2025 strategic plan. Photographer: Angel Garcia/Bloomberg (Angel Garcia/Bloomberg)

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

The stock fell as much as 3.6% to €9.86 in Madrid, down from its IPO price of €10.23. Cox sold about 17 million shares at the bottom end of a marketed price range following reductions in the size of the offering. 

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.

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.

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