Ecopetrol Sale Falls Short

Ecopetrol got COP2.40trn ($1.34bn) in demand for its equity follow-on during the order period that closed last week, falling just short of its COP2.5trn target. The state-controlled oil producer launched the deal July 27, announcing it would sell 675.7m shares at COP3,700 each. Since then, global equity markets have taken a turn for the worse, with the share price dipping below the COP3,700 level. The overhang from future Ecopetrol sales – the government aims to sell up to 9.9% of the company in pieces beginning next year – also may have hurt. Still local analysts and brokers had expected Ecopetrol to squeak by. Orders came in from 228,000 accounts, owing to heavy marketing efforts focused on Colombia retail investors. Credit Suisse, JPMorgan and Bancolombia managed the sale.