By Andrea Figueras

Shares in Spanish water and energy utility Cox ABG dropped below the price of its initial public offering as they began trading in Madrid and on other Spanish stock exchanges.

The stock traded at 9.86 euros in European midday trading, 3.6% below the 10.23 euros per share offering that the company set on Wednesday. The IPO price targeted a market value of 805 million euros ($847.7 million).

The company planned to raise 175 million euros in gross proceeds, with an additional over-allotment option of around 10 million euros.

The IPO will help finance the group's water and energy transmission concessions and energy generation projects, it said Friday.

Earlier this week, the company decided to reduce the size of the IPO from its previously targeted gross proceeds of 200 million euros.

Founder and chairman Enrique Riquelme Vives said that the listing marks the beginning of a new era for Cox and noted that the company has plenty of challenges and opportunities ahead.

Riquelme founded Cox in 2014. It was previously known as Coxabengoa, the name the group adopted after merging the assets of Cox Energy and Abengoa in 2023.

The group--headquartered in Madrid--booked full-year revenue of 581 million euros in 2023 and earnings before interest, taxes, depreciation and amortization of 103 million euros.

Cox's flotation ramps up the IPO market in Spain just months after Jean Paul Gaultier owner Puig Brands listed its shares on the Spanish stock market, which at that time became the biggest offering of the year.

Spanish fashion retailer Tendam--which houses brands such as Women'secret, Springfield, Cortefiel and Pedro del Hierro--said it could launch an IPO in its current fiscal year ending in February if market conditions are appropriate.

Meanwhile, Europastry--the Spanish company specialized in frozen bakery products--postponed its trading debut that was expected in October, citing market instability related to geopolitics.

Write to Andrea Figueras at andrea.figueras@wsj.com

(END) Dow Jones Newswires

November 15, 2024 07:55 ET (12:55 GMT)

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