Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Bancolombia Rises Past Target of $1.2 Billion Equity Offering

Feb. 27 (Bloomberg) -- Bancolombia SA, the Andean nation’s biggest lender, rose to a two-month high and traded at a premium to the price it is expecting in a stock offering of about $1.2 billion that ends this week.

The shares gained 2.1 percent to 23,840 pesos at 1:21 p.m. in Bogota after reaching 24,800, the highest intraday price since Dec. 24. The Colcap index climbed 0.7 percent.

Investors have pushed the stock above the “indicative” range of 21,350 pesos to 23,200 pesos that Bancolombia set in its offer on speculation demand has been strong for the stock and the Medellin-based company is still undervalued, said David Santos, a senior analyst at Compass Group in Bogota.

“The demand has been there, it definitely has, but only until Monday will we know how investors are standing,” Santos said in a telephone interview. “The market is recognizing that Bancolombia has been trading well below its peers and its historical average, and it’s a clear opportunity to buy.”

The shares may climb to 29,034 pesos in 12 months, according to the average of eight estimates compiled by Bloomberg. Bancolombia is seeking to sell 110 million shares, fetching 2.45 trillion pesos ($1.2 billion) at the midprice of the range, in an offering that ends tomorrow.

“There has been a lot of appetite, more than we were expecting,” Chief Executive Officer Carlos Raul Yepes said in an interview after a press event in Bogota yesterday.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.