Bancolombia Drops on Planned $1.2 Billion Stock Sale at Discount

Bancolombia SA, the nation’s largest bank, fell the most since 2012 after the company said it may sell $1.2 billion of shares at a discount to its closing price.

The Medellin-based bank’s shares dropped 1.6 percent to 22,820 pesos at 10:55 a.m. in Bogota after earlier sliding as much as 4.7 percent in the biggest intraday decline since August 2012. The Colcap index declined 0.8 percent today.

Bancolombia said in an offer published in La Republica that it expects to sell 110 million shares at 21,350 pesos to 23,200 pesos each in Colombia. The lower end of the range would be an 8 percent discount to the closing level Feb. 7, according to data compiled by Bloomberg.

“They’re setting a wide range, and the market seems to be heading more or less toward that midpoint,” David Santos, a senior analyst at Compass Group in Bogota, said in a telephone interview. “You have to keep monitoring the appetite for the stock to see where it ends up pricing.”

Bancolombia closed its $2.2 billion deal for HSBC Holdings Plc (HSBA)’s Panama unit in October after completing the $217 million purchase of a stake in Guatemala’s Grupo Agromercantil Holding earlier in the month.

To contact the reporter on this story: Christine Jenkins in Bogota at cjenkins28@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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