Cementos Argos SA, Colombia’s largest cement maker, fell to a seven-month low after the company sold 1.4 trillion pesos ($763 million) of preferred shares at the low end of its estimated range.
The common shares dropped 4.4 percent to 7,880 pesos at the close in Bogota, the lowest price since Oct. 2. The Medellin-based company sold the new shares for 7,700 pesos each, according to a regulatory filing yesterday. Cemargos had indicated in a filing on April 16 that they would probably price in a range of 7,700 pesos to 9,300 pesos.
Today’s drop left the cement maker’s shares down 25 percent since Feb. 14, the day before the company said it would sell the preferred securities to “increase financial flexibility to maximize growth opportunities.”
Carlos Yusty, the chief financial officer of Cementos Argos, didn’t immediately respond to an e-mailed request for comment.
Chief Executive Officer Jorge Mario Velasquez said in yesterday’s filing that the preferred shares got a “good reception” that provided “a vote of confidence in the company’s strategy to focus on the cement and concrete business.”
Credicorp Capital’s Colombia unit said Cemargos’s preferred shares may trade 185 pesos higher than the common shares because they pay a larger dividend.