Monday, October 26, 2015

Perennial 4.65% 3-Year Issue Post-Mortem

Perennial has successfully issued their bonds!

Based on their SGX release, their retail bonds were a whooping 9.1 times oversubscribed! This trumps the Aspial issue which was 8.7 times oversubscribed. Well done Perennial!

Also, like I have brought up, Perennial is allowed to expand their bond issue amount of there is demand for it. Since there was excess demand, they expanded their total bond issue amount from just 150 mil to 300 mil! Another well done for Perennial!

Today, their bonds started trading on SGX and they closed at a decent price of 1.013! Anyone that sells now makes an immediate gross return of 1.3%! Wow, that's better than most fixed deposits! Good job Perennial!

Of the 57 people that voted in my previous poll, I hope all 33 of you managed to successfully apply for it, because everyone who successfully applied would received some bonds, especially for the ones who applied at lower amounts!

This oversubscription was easily expected by many because of the many yield-starved retail investors. I wouldn't say if its a good thing or a bad thing, but since I'm a Perennial equity holder, it's definitely a good thing for me that there is a lot of enthusiasm. Hopefully this can translate into higher stock prices and squeeze out the NAV discount that it is trading at!

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