Fabricato Fails to Trade in Bogota as Investors Stay Away
Trading in Colombian textile maker Fabricato SA was halted within hours after it opened for the first time in three months as investors refused to buy the shares in a price range set by the country’s stock exchange.
Trading in the stock, which last changed hands Nov. 16 at 72 pesos, was halted at 12:35 p.m. after no buyers emerged, the exchange said in a statement on its website. The exchange planned to suspend trading for 15 minutes and then conduct an auction with a floor price of 60.5 pesos.
As of 4:05 p.m. in Bogota, no trades had been recorded, according to data compiled by Bloomberg. An exchange spokesman said he couldn’t comment on the auction or the trading.
Fabricato plunged 21 percent on Nov. 16, leading to a suspension of the shares and prompting regulators to ban a resumption until the Medellin-based company commissioned a valuation report by an independent firm. That report, published Feb. 19, valued the shares at 35 to 55 pesos.
The textile maker was the target last year of a failed control bid by an investor group backed by the financial firm Interbolsa SA. Bogota-based Interbolsa is being liquidated by the Colombian government after its brokerage firm, formerly the country’s biggest, collapsed last year, according to Colombian officials.
An auction this morning also failed to produce any trades, the exchange said in today’s statement.
To contact the reporter on this story: Christine Jenkins in Bogota at email@example.com