Bancolombia share offer draws strong interest, sets price

BOGOTA, March 3 Mon Mar 3, 2014 7:59pm EST

BOGOTA, March 3 (Reuters) - Colombia's biggest financial institution, Bancolombia, fixed a price of 24,200 pesos per share (US$11.80) in a public offering that drew bids for almost three times the amount of stock offered, the bank said on Monday.

Market sources with detailed knowledge of the offer said Bancolombia sold 110 million preferred shares for 2.66 trillion pesos or around $1.3 billion. The bank plans to reveal the final result of the share offer on Friday, the sources said.

"By the time the books were closed, total investor demand reached 294,786,431 preferred shares, corresponding to 2.7 times the quantity of shares offered," the bank said in a statement.

Around three quarters of the shares sold in the three-week offer, which ended last Friday, were to existing Bancolombia investors exercising their right to priority in the sale.

Preferred stock in Bancolombia ended trading on Monday at 25,260 pesos.

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