Grupo Aval Acciones y Valores S.A said Thursday it has filed with the U.S. Securities and Exchange Commission to raise up to $100 million in an initial public offering. The company did not specify the number of shares to be sold and the price range for the proposed offering.
The company noted that it intends to apply to list the ADSs on the New York Stock Exchange, or NYSE, under the trading symbol "AVAL." The company's preferred shares are listed on the Colombian Stock Exchange under the symbol "PFAVAL."
The company stated that it intends to use the net proceeds from this offering to increase capital in its banking subsidiaries. It may also use a portion of the proceeds for general corporate purposes, which may include prepaying outstanding indebtedness, including to related parties. These expected uses of net proceeds represent its intentions based upon its present plans and business conditions.
Grupo Aval was founded by chairman, Sarmiento Angulo, to consolidate his interests in the Colombian financial sector. Sarmiento Angulo established a real estate development firm in Bogotá in 1956, and in 1959 founded Organización Luis Carlos Sarmiento Angulo, which developed low- and middle-income housing neighborhoods in Bogotá in the 1960s and 1970s. In 1971, Sarmiento Angulo acquired a majority stake in Banco de Occidente, and in 1972 founded Corporación de Ahorro y Vivienda Las Villas to focus on low- and middle-income mortgage financing.
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