Banco Davivienda, Colombia’s third-largest bank by assets, is gearing up to launch an initial public offering in the local market with shares priced at an estimated 14,000 pesos ($7.65) to 17,000 pesos ($9.30), local brokerage firm Alianza Valores said in a research note.
The bank has been readying the requirements to sell a stake on the local bourse. The bank’s board of directors on May 11 approved the sale of 26 million preferential shares without voting rights.
The sale has been approved by regulators and local media have reported that the IPO, which would represent a 6.4% stake in the bank, could be launched as early as this week. Efrain Forero, the bank’s chief executive, wasn’t immediately available for comment.
The IPO will be the first in the local market since 2007 when Helm Bank SA (PFHELMBAN.BO) floated a 15% stake.
Alianza Valores said it recommends buying the shares if they are priced below COP17,000.
Davivienda posted profits in the first half of 2010 for COP247 billion ($134 million). (Darcy Crowe / Dow Jones)