High-Hyped $ 12B Aramco Bond sees disappointing first-day movements
Having seen great interest with a high-quality $ 100 billion in orders on Tuesday, Aramco's bond, but mildly upward on Wednesday, saw the first day out of the port.
The lack of response, according to Reuters sources, suggests that The First Demand was inflated.
Despite $ 100 billion in orders, only $ 12 billion of debt was issued. This big difference in the two led many to believe that the daily activity would be stronger than it was. The reason for this, according to a trader who spoke to Reuters, is that many had already expected that demand would be substantial and orders would go unfinished, so traders put extra orders in hopes of bending past other traders who also scrambled for a piece. of the Aramco tower.
Still a general success, if not disappointing, bond sales have eliminated any idea that traders are too keen to get to bed with Saudi Aramco, which for all purposes is the same thing as the Kingdom of Saudi Arabia.
Someone sees yesterday's success as a measure of the interest that Aramco's massive IPO would generate if the oil company ever wants to overcome the challenges of such an enterprise. Others believe it is possible that IPOs will not take place at all when Aramco has withdrawn the bond in what can not only be interpreted as a face-saving move, but as taking the place of the cash-generating purpose of the stock exchange listings. The hope? That the IPO would generate a hard-fought $ 1[ads1]00 billion-harder than issuing bonds, anyway.
The official word on Aramco's IPO is that it is still on the right track, but quite out of the way, in 2021.
The recent issued bonds released early on Wednesday but remained one of the most traded bonds, according to Financial Times.
By Julianne Geiger for Oilprice.com
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