Cementos Argos SA (CEMARGOS), Colombia’s largest cement maker, fell the most on the country’s benchmark stock index this week as the company said it may sell preferred shares to help fund growth.
The common shares (CEMARGOS:US) fell 5.2 percent during the week to close at 9,470 pesos in Bogota, the lowest price since Nov. 30. The shares fell 2.4 percent today. The daily and weekly declines were both the biggest among the 21 stocks in the benchmark Colcap index.
Cementos Argos, based in Medellin, will propose a sale of preferred stock at a shareholder meeting on March 15, according to a regulatory filing on Feb. 20 that didn’t specify the amount or timing of the sale.
Investors expect to get more information on the offering after Cemargos reports earnings next week, according to Sebastian Gallego, an analyst at Corredores Asociados SA. Cemargos is scheduled to report fourth-quarter earnings on Feb. 25.
The company is planning to sell shares in both local and international markets, Cementos Argos said in a Feb. 15 filing. The sale will “increase financial flexibility to maximize growth opportunities,” the company said.
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