Grupo Aval Eyes US Equity Sale

Colombia’s Grupo Aval is planning to sell shares in the US, according to a regulatory filing, in what would be an IPO of its ADS. The owner of banking and pension operations including Banco de Bogota has indicated a $100m size in the documents, though it is not bound to this amount and the eventual deal should be much larger – if its previous plans for a US offer are any indication. JPMorgan and Goldman Sachs have been hired to manage. Each ADS will represent a to-be-determined number of Aval’s preferred shares. The issuer is raising funds to increase capital in its banking subsidiaries, and possibly for general corporate purposes. It been targeting an ADS debut since at least since 2011, when it also filed initial papers for a US listing and was heard considering at least $1bn. Aval has been funding itself in the bond market – raising $1.6bn last year – and agreed in January to buy BBVA’s Horizonte pension operation in Colombia for $530m. Its last visit to the Colombian equity market was a $1.1bn-equivalent sale representing the debut of the group’s preferred shares, done to pave the way for a US sale.