Daily Colombian Equities Bulletin and Fundamentals 5-27-14
May 28, 2014 (www.investorideas.com newswire) The Colcap index closed at 1,663.5 points (-0.03%). Total turnover reached USD 100.5 mn. The best performers were El Condor (+4.96%), Exito (+1.51%) and Grupo Argos (+1.48%). On the other hand, the worst performers were Isagen (-2.04%), Conconcreto (-1.40%) and ETB (-1.36%).
Cemex Latam Holdings - Target Price Update:
We update our Cemex Latam Target Price to COP 18,900/share and a HOLD recommendation. We see the cement company as the most profitable of the region, and it's worth to mention that the share has rallied a 15.7% YTD vs Colcap Index which has increased only 3.6%.
Canacol Energy announced that it closed a bought deal equity financing announced on May 6, 2014. The Corporation issued 15,823,000 common shares of Canacol (the "Common Shares") at a price of CAD 7.90 per Common Share for gross proceeds of CAD125,001,700 (the "Offering"). The Offering was underwritten by a syndicate of underwriters led by Canaccord Genuity Corp. and including TD Securities Inc., CIBC World Markets Inc., Cormark Securities Inc., Desjardins Securities Inc., GMP Securities L.P. and Mackie Research Capital Corporation (collectively, the Underwriters"). The Corporation granted the Underwriters an option to purchase up to 15% additional Common Shares (the "Over-Allotment Option"), exercisable for a period of 30 days following the date of closing to cover over-allotments, if any. Canacol plans to use approximately USD 62.9 million of the net proceeds from the Offering to expand its calendar 2014 capital program, including two additional exploration wells and seven additional development wells on the Corporation's LLA-23 and Santa Isabel E&P contracts, while the remainder is expected to be used for future capital expenditure activities, working capital and general corporate expenses.
The Energy and Mines Minister, Amylkar Acosta Medina, announced that the investment that Ecopetrol - Chevron are making in the gas fields of Ballenas, Chuchupa and Riohacha will boost the recovery factor to 93% from 50%, and will increase in 50 million cubic feet per day the gas production.
Colombia's Caño Limón-Coveñas pipeline restarted operations after the longest stoppage since the 1980s.
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