Cox seeks to reassure market amid IPO suspension doubts
Cox is trying to convince the market amid a scenario of doubts where several IPOs have already been suspended. A week after announcing its IPO, it has now revealed that a company from the United Arab Emirates, a Moroccan bank, and a Spanish company will join the founders in purchasing shares in its stock market debut. Enrique Riquelme's company aims to raise up to 300 million euros before the end of October.
Strategic investors commit to Cox IPO
In a statement, the company said that it “has already received binding commitments from strategic investors, representing approximately 30% of the total offer.” Amea Power, Corporación Cunext, Alberto Zardoya, Enrique Riquelme, and the Moroccan bank Attijariwafa Bank are committed to attending the IPO, according to Cox.
If these commitments are met, Cox would already have around 80 million euros tied up. In this way, the firm still needs investors for about 220 million euros to reach the 300 million euros it has set as its target, including a 15% over-demand (green shoe).
“All of the above is subject to the final approval of the prospectus for admission to listing by the CNMV and, in the case of Attijariwafa Bank, to compliance with applicable regulations and internal processes, as well as to Moroccan law,” the company warns in its statement.
These investment commitments are particularly relevant in a scenario where the market is showing particular doubts for IPOs not only in Spain but also in Europe. So far this year, only Puig, with a capitalization of around 3,400 million euros, has achieved its objective. Cox aims to value the company at more than 1,000 million euros. Other firms such as Europastry, whose IPO derailed last week after it had even submitted the prospectus to the CNMV and revealed the support of Criteria Caixa, were also handling similar figures.
Tendam (Cortefiel), Hotelbeds, Astara, and Volotea have also postponed their decisions to try to place part of the company on the market. It remains to be seen whether Cirsa will continue with its intentions to carry out an IPO.
Santander, Bank of America, and Citigroup are the global coordinators of Cox for this operation, with JB Capital and Alantra as the issue placers. Banco BTG Pactual acts as co-director of the issue, Latham & Watkins is the legal advisor to Cox, and Clifford Chance acts as legal advisor to the managers, while Lazard acts as the sole independent financial advisor to the offer.
The company said a week ago that in twelve days it would finish its investor education process and then file the IPO prospectus with the CNMV. It aims to go public before the US elections.
The offer is directed at qualified investors, including a placement in the US to qualified institutional buyers.
The company has highlighted that Amea Power is one of the renewable energy companies with the highest growth in the Middle East, Africa, and Asia, with a renewable energy ‘pipeline’ of more than 6 gigawatts (GW) in more than 20 countries.
For its part, Attijariwafa Bank is the leading financial group in Morocco. It is part of the Al Mada Group, one of the largest venture capital funds in Africa, which invests in capital-intensive sectors such as banking, insurance, retail, mining, construction, energy, telecommunications, real estate, and tourism, among others.
Likewise, Cox notes that Corporación Cunext is one of the most relevant industrial groups in Spain and one of the main suppliers of transformed copper and aluminum products in Southern Europe and Northwest Africa.
Lastly, Alberto Zardoya is a Spanish businessman, founding partner of Zardoya Otis, and a shareholder in Cox since its inception, while Enrique Riquelme is the founder of Cox and the company's main shareholder.