Billionaire’s Aval Drops on U.S. Share Sale Plan: Bogota Mover
Grupo Aval Acciones y Valores SA, the Colombian banking group controlled by billionaire Luis Carlos Sarmiento Angulo, tumbled the most on the country’s benchmark index after announcing a plan to sell shares in the U.S.
The company’s Colombian shares fell 0.7 percent to 1,420 pesos as of 10:23 a.m. in Bogota, after rising yesterday to a record high of 1,430 pesos. Today’s drop was the worst performance on the benchmark Colombian Colcap index, which rose 0.1 percent. Trading volume was 4 times the three-month daily average.
Aval may offer as much as $100 million of American depositary receipts, according to a filing today with the U.S. Securities and Exchange Commission. The estimated maximum is a placeholder figure used to calculate registration fees and may change.
Chief Executive Officer Luis Carlos Sarmiento Gutierrez said in September that the Bogota-based company was “waiting for the best timing” for an overseas sale. “We’re ready and have been ready for more than a year to issue ADRs,” he said at the time.
The amount of the sale hasn’t been set and is subject to shareholder approval, according to investor relations officer Tatiana Uribe. Proceeds may be used to strengthen the group’s four banks and “support their organic and inorganic growth,” Uribe said today in a telephone interview.
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