Bancolombia Drops on Proposal to Sell Preferred Stock

Bancolombia SA, Colombia’s largest bank, dropped the most in six months after saying it will propose a preferred stock sale at a shareholder meeting.

The preferred shares fell 3.2 percent to 30,000 pesos at the close in Bogota, the biggest drop since August. It was the worst performance on the benchmark Colcap index, which slipped 0.6 percent.

Shareholders will consider the preferred stock proposal at the Medellin-based bank’s March 4 meeting, according to a regulatory filing on Feb. 8 after markets closed.

“This is the procedure the bank goes through in order to have their regulations up to date in case there’s an opportunity in the market,” the company said in an e-mailed statement.

The proposal “took us by surprise” and its purpose is not clear yet, Juan Camilo Dominguez, an analyst at brokerage Correval SA, said in a report today. The sale is likely to “not be materialized in the mid-term,” according to the report.

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