Colombian Builder Launches Follow-on

Colombia’s Conconcreto has launched its equity sale, it says, targeting more than $130m-equivalent and using a discretionary allocation process seen as a novel move for a Colombian follow-on. In contrast to the usual process of setting a fixed price and then taking orders, the infrastructure specialist has indicated a fair value price of COP1,643 ($0.91) per share, and noted that a 12%-18% discount would be appropriate, or COP1,347-COP1,446. Buyers can now submit their bids, be they existing holders looking to exercise preferential rights or new entrants, through December 20. The discount range indicates a COP242.46bn-COP260.28bn ($134m-$144m) total size. Shares closed Tuesday at COP1,300. The 180m shares on offer should represent about 20% of the company post-offering. The proceeds are to be used to fund infrastructure projects. Bancolombia is managing the sale, with Bolsa y Renta and Exponencial joining it as structuring agents. Cemex Latam sued a similar discretionary allocation process in its November IPO. Conconcreto raised COP94.68bn in a December 2010 IPO.