Ecopetrol shares

pedro says on Aug 28, 2007, 13:32:

Forgot to add.

This is the first offer I've ever seen where you can buy shares in 12 cuotas sin interes! haha

que nota!

curramberochris says on Aug 28, 2007, 15:25:

I haven`t looked into the details of the shares, but I think they are pushing the shares to smaller private investors, so they feel part of the company and the development of Colombia, something like that......I believe they are for sale in blocks of 1000 (1,400,000pesos)...I am considering it, although I can`t remember when the offer closes???

Brians says on Aug 28, 2007, 17:36:

Closed yesterday. Min was $1,400,000 pesos and max $70,000,000 pesos.

Tinto (Moderator) says on Aug 28, 2007, 18:35:

Page 60 and 61 of this .pdf contain the following information:

- Enterprise value of $24.9 billion USD
- IPO price of 1400 pesos per share
- IPO price equivalent to 4.5x 2007 EBITDA (the pages include comparisons to other integrated oil companies)
- Reserves at $15.85 USD/barrel
- 2007 EBITDA projected to be $5.5 billion USD
- Reserves on Dec 31 2006: 1.571 billion BOE

http://www.ecopetrol.com.co/socios/downloads/plannegocios.pdf

I'm going to keep an eye on it. I glanced at some of the materials a while ago and I think there might be two more rounds for the Colombian public and then an offering to foreigners beginning in November. It doesn't seem a screaming bargain by any means.

FWIW - I'm not familiar with Colombian GAAP, so maybe EcoPetrol was fulfilling a requirement, but there are several pages that project oil prices and earnings out a decade. Haven't seen that before and it seems useless because it looks like they held production constant but plugged in lower prices. Makes the income slope point the wrong way.

capitan_centella says on Aug 28, 2007, 21:21:

I am considering, to invest. But I am totally newbie. . . somebody can translate this to plain spanish? or plain english? thanks. . .

"When you open your eyes, you turn around with the world, But it can change, if you only close it, and see a dream to yourself." Me.

pedro says on Aug 29, 2007, 20:18:

Tinto, that's great info, thanks!

que nota!

kat1 (Moderator) says on Sep 3, 2007, 08:50:

I thought it close on the 25th of september.! damm did i missed it

engage brain before opening mouth

pedro says on Sep 3, 2007, 12:19:

Kat1, you are correct, it only just opened.

que nota!

kat1 (Moderator) says on Sep 5, 2007, 05:20:

pity you can't buy the shares online, to send money to Colombia is a real pain, why can't they do it online?

engage brain before opening mouth

pedro says on Nov 17, 2007, 12:32:

http://www.reuters.com/article/newIssuesNews/idUSN1528306420071115

BOGOTA, Nov 15 (Reuters) - Colombia's state oil company, Ecopetrol, privatized 10.1 percent of itself by selling $2.8 billion of stock to Colombian investors, according to final figures announced by the firm on Thursday.

It was the biggest transaction in the history of this Andean country, which is trying to bolster its oil industry, and the first time that Ecopetrol has opened itself to private investment.

The company received offers totaling $3.5 billion, an Ecopetrol spokeswoman said.

Most of the 480,000 buyers were retail investors, while 37 percent of the shares went to pension funds.

International investors will be allowed to buy Ecopetrol shares later this year when when they are expected to be listed on Colombia's bourse.

Ecopetrol says all proceeds from the deal will be invested in itself as the company tries to revitalize Colombia's oil sector, which has been stunted by a four-decade-old guerrilla war in which leftist rebels often bomb pipelines.

The company operates 104 oil and gas fields throughout the country.

President Alvaro Uribe has spurred economic growth with his U.S.-backed crackdown on the rebels. His security policies have reduced crime, especially in urban areas, but the guerrillas still control wide swathes of countryside. (Reporting by Nelson Bocanegra, writing by Hugh Bronstein; Editing by John Wallace)

que nota!

rhydewithdis says on Nov 18, 2007, 15:04:

at kat1
The reason is because the shares were listed on the local stock exchange. Purchasing of equity shares listed on the local exchange (Bolsa de Valores) requires having an account with a broker that is allowed to trade on that exchange. There may very well indeed be brokers in Colombia that allow you to trade online but just because you can access the website does not mean you can set up an account to trade.

Some of the major reasons for this is are: 1) you must fund the account with pesos denominated currency, 2) when the broker provisions your account they are most likely responsible to confirm the origin of funds and 3) they need your tax ID to report realized gains/losses.

They said I couldn't play football I was too small / They say I couldn't play basketball I wasn't tall / They say I couldn't play baseball at all / And now everyday of my life I ball.

msaucey says on Nov 18, 2007, 15:33:

Can anyone tell me how long they will have the shares available?... a month or a couple of weeks?..

I missed the cut-off last time, there was WAY too many people in line...

The trouble about trying to make yourself stupider than you really are is that you very often succeed. - CS Lewis

rhydewithdis says on Nov 18, 2007, 15:49:

at msaucey

what do you mean how long the shares will be available? Ecopetrol already has their shares listed on the exchange--you are now free to purchase them at whatever the spot rate for the shares are.

The line you are probably talking about was when they were IPO'ing the shares.

They said I couldn't play football I was too small / They say I couldn't play basketball I wasn't tall / They say I couldn't play baseball at all / And now everyday of my life I ball.

pedro says on Nov 27, 2007, 17:47:

Limit up on the first day (gain of 20%). Pretty encouraging for those that bought in.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=amTqv5mdsNqc

Ecopetrol Rises to Limit, Halted in First Trading Day (Update2)

By James Attwood

Nov. 27 (Bloomberg) -- Ecopetrol SA was halted on Colombia's stock exchange in its first day of trading after completing Latin America's second largest initial public offering this year.

Trading in Colombia's state-controlled oil company was suspended for 30 minutes after bids rose to 1,540 pesos, reaching a 10 percent upper limit, an exchange spokesman said by phone. Trading was stopped again, until tomorrow, after bids rose another 10 percent.

``It was expected, because since the public offering the price of oil has increased over 20 percent, and there is strong correlation between oil prices and oil companies' share prices,'' Marcela Giraldo, head of equities research at Bogota-based brokerage Corredores Asociados, said by phone.

Ecopetrol is seeking to replicate a model pursued by Petroleo Brasileiro SA, Brazil's state-controlled oil company, which first sold shares last decade and in 2005 succeeded in making Brazil a net oil exporter for the first time. Petrobras has gained 46 percent this year in Sao Paulo.

Ecopetrol's appeal is based on expectations oil prices will stay high over the next 20 years, along with the company's high operating margins and the likelihood of high dividend payments, brokerage Interbolsa wrote in a Nov. 19 report. There is also demand for the stock from some institutional investors excluded from the IPO, analysts including Juan Dauder wrote.

Investment Plans

Company President Javier Gutierrez plans to use proceeds of its $2.7 billion share offering to almost double investment in oil and natural-gas projects next year to boost declining reserves and production.

Corredores Asociados values the stock at about 1,900 pesos. Interbolsa said it will probably rise to 2,168 pesos by the end of next year. The company is planning a second share offering in April and one overseas by the end of 2008, Gutierrez said in a Nov. 23 interview.

Ecopetrol may help jumpstart trading in Colombia, the Latin American region's fourth-largest exchange in terms of daily trading volumes, the head of the bourse said.

``Without a doubt it is going to get a significant boost,'' Juan Pablo Cordoba, president of Bolsa de Valores de Colombia, one of three Latin stock exchanges with publicly traded shares.

Ecopetrol, along with other new listings and share sales in the Colombia, will help close the gap with Santiago, Chile as the region's third-biggest stock market, he said.

To contact the reporter on this story: James Attwood in Santiago at jattwood3 at bloomberg.net

Last Updated: November 27, 2007 17:33 EST

que nota!

pedro says on Nov 28, 2007, 11:58:

Damn, limit up again today. Ecopetrol holders have a 44% paper gain so far.

http://www.bvc.com.co/bvcweb/mostrarpagina.jsp?tipo=2&codpage=4798

Negociación de Ecopetrol suspendida hasta el jueves
(2007-11-28 10:09:45 Fuente: BVC)
Operadores concretaron operaciones por $16.133 millones.

Los títulos de la petrolera estatal Ecopetrol, que comenzaron a negociarse el martes en la Bolsa de Valores de Colombia y que fueron suspendidos ese día por la alta demanda, registraron hoy dos nuevas suspensiones temporales al superar en cada ocasión el precio ofrecido más de un 10%.

A las 9:37 de la mañana, luego de que en el sistema apareciera una oferta por $2.050, el título fue suspendido de la rueda accionaria y mañana se volverá a transar a un precio base de $2.022,74, valor que corresponde al precio medio alcanzado por el papel durante el día.

Operadores del mercado lograron hoy concretar los primeros negocios de compra y venta de la especie. En total se transaron 7.976.076 acciones, por un valor total de 16.133 millones de pesos.

que nota!