Abengoa Share Sale Said Offered at Up to 18% Discount

Oct. 16 (Bloomberg) -- Abengoa SA, a bioethanol producer with plants in the U.S. and Europe, is selling shares at 1.80 euros to 1.90 euros each as it seeks to cut debt, people familiar with the matter said.

The company is offering Class B stock in the form of shares or American Depositary Shares, to be listed in Spain and New York. The deal will price after the close of trading today and the offering has received enough applications in that range to fill the order book, according to two people, who asked not to be named as details aren’t public.

A pricing of 1.80 euros per B share would be an 18 percent discount to yesterday’s close. The stock fell 5.9 percent to 2.06 euros at 1:02 p.m. in Madrid today.

Abengoa filed to offer as many as 182.5 million Class B shares, which typically have different voting rights to their Class A counterparts, on Oct. 4. If the Seville, Spain-based company sells that many shares at the mid-point of the range, it would raise about 338 million euros ($458 million).

Abengoa, which disclosed this month that it was being investigated as part of a European Union antitrust probe into possible manipulation of oil and biofuel prices, said it will use the proceeds to repay debt and strengthen its balance sheet.

Citigroup Inc. and HSBC Holdings Plc are managing the sale, along with Bank of America Corp., Banco Santander SA, Canaccord Genuity Group Inc. and Societe Generale SA.

The volume of additional share sales in Europe, the Middle East and Africa has risen to approximately $82 billion this year, nearly double what issuers raised in the same period in 2012, according to data compiled by Bloomberg.

To contact the reporters on this story: Ruth David in London at rdavid9@bloomberg.net; Alexis Xydias in London at axydias@bloomberg.net; Francesca Cinelli in Milan at fcinelli@bloomberg.net

To contact the editors responsible for this story: Andrew Rummer at arummer@bloomberg.net; Aaron Kirchfeld at akirchfeld@bloomberg.net