May 17 (Bloomberg) -- Cementos Argos SA fell the most in a week as traders discounted the Colombian cement maker’s common stock on the first day of trading for its new preferred shares, which pay a higher dividend.
The common shares fell 0.7 percent to 8,120 pesos at the close in Bogota, the biggest drop since May 10. The preferred shares, sold last week for 7,700 apiece, advanced 6 percent to 8,160 pesos. The preferred shares were the most heavily traded securities today on Colombia’s stock exchange, where the benchmark Colcap index gained 0.2 percent.
The common shares should carry a price roughly 145 pesos below that for the preferred shares, Juliana Valencia, an analyst at Credicorp Capital’s Colombia unit, said in a telephone interview. The gap between the two is about 40 pesos at the current price levels.
“The market was expecting a big gain for the preferred immediately,” Valencia said.
The Medellin-based company raised 1.4 trillion pesos ($760 million) through the preferred sale.
Cemargos will use the funds “to increase financial flexibility mainly to search for growth options,” including potential acquisitions and capacity expansion, Chief Executive Officer Jorge Mario Velasquez said today at an event in Bogota.
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