Cementos Argos Closes Books

Colombia’s Cementos Argos closed books Wednesday on an equity follow-on targeting more than COP2.0trn ($1.09bn), with pricing expected today. Books were heard to be more than covered Wednesday, according to people following the sale. The cement producer is offering up to 250m preferred shares at COP7,700-COP9,300 each, which would mean a COP2.125trn deal at the COP8,500 midpoint. The sale includes Colombian and international offers. The issuer elected to set a price range for the transaction, due to the shares’ lower liquidity, according to people following the deal – though they note the shares are not as illiquid as other LatAm follow-ons in the recent past that have elected to set a range. Parent Grupo Argos has indicated it will not exercise its rights in the offer. Argos plans to use 20% of the funds raised to repay debt, and the remainder for growth, with both organic and expansion and acquisitions possible. Bancolombia, JPMorgan and HSBC are global coordinators, with Bank of America Merrill Lynch, Credit Suisse and Itau as bookrunners.