The arrival of the Public Acquisition Offers (OPA) proposed by Jaime Gilinski have brought greater liquidity to the stock market and movements in the Msci Colcap index. This indicator measures the movement of the most liquid shares of the Colombian Stock Exchange.
Due, Nutresa and Sura they have been losing participation in said meter due to a drop in the number of shares available in the stock market. In fact, a recent report by Grupo Bancolombia shows that the insurance company would go from position nine to ten, with a 3.1% share in the index. Nutresa would remain the same with an interference of 4.2%.
However, the arrival of a new round of takeover bids on the market would lead to the exit of Inversiones Suramericana from the Msci Colombia index for failing to comply with the minimum size parameters, measured from the float-adjusted market capitalization. This could imply sales flows by foreigners, the amount of which is unknown to date.
“Depending on the acceptances reached and whether or not the acquisition limits are released by the bidders, the reduction in the float could become such that, effectively, the shares would cross the minimum limit to be in the Colcap and, consequently, they would come out of it,” the document reads.
According to calculations, this would happen only if the float of the companies were reduced below 5%. If one or both stocks leave the index, it will most likely remain with less than 25 species until the rebalancing in November. Once again, once these operations are completed, and if the change in floats exceeds 5%, a new extraordinary event could take place by Msci to adjust the weightings.
For Valeria Álvarez, equity strategist for Itaú Comisionista de Bolsa, the company’s stock would return to its previous levels.
“Even so, this behavior will also depend on the moves made by the management. I do not see an exit from the Msci Colcap in the future as viable due to the new traction of issuers”, added the expert.