Cementos Argos SA (CEMARGOS), Colombia’s largest cement maker, fell the most in two weeks after shareholders approved a sale of new preferred stock to help fund growth.
The Medellin-based company’s stock tumbled 3.1 percent to 8,800 pesos at 11:29 a.m. in Bogota trading, the biggest intraday drop since March 1.
Shareholders approved a sale of as much as 250 million preferred shares, including ADRs, according to an e-mailed presentation March 15. The company didn’t say what proportion would be issued locally compared with ADRs. The share sale will “maximize growth opportunities,” the company said in a Feb. 15 filing.
Investors may be worried about dilution of their shares, Lilian Mora, an analyst at Ultrabursatiles in Bogota, said in a telephone interview.
The money raised could help Cementos Argos increase its capacity to meet government investment in infrastructure and roads, according to Mora.
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