Cementos Argos SA, 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 shares tumbled 3.1 percent to 8,800 pesos at the close of trading in Bogota, the biggest 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,” Cementos Argos 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.