Colombian Builder Prices Follow-on

Colombia’s Conconcreto has priced a COP243bn ($137m) equity follow-on, it says, arriving at a price near the bottom of the range it had suggested. The infrastructure specialist priced 180m shares at COP1,350 each, versus the COP1,347-COP1,446 range it had indicated at the opening of the subscription period in the first week of December. Conconcreto used 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 indicated a fair value of COP1,643 per share, and noted that a 12%-18% discount would be appropriate. Conconcreto shares closed at COP1,350 on Monday. The sale represents about 20% of the company post-offering. The proceeds are to be used to fund infrastructure projects. Bancolombia managed 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.