Globant Finally Floats Stock on NSE in IPO Worth Almost $400 Million

Argentinean technology firm Globant has finally listed its shares on the New York Stock Exchange, floating more than 5 million shares for US$10 a piece.  The shares, being traded under the symbol “GLOB”, rose as much as 30% after the opening bell on Friday (July 18) before giving back some of the gains.

The IPO values Globant at almost US$400 million. For the first quarter of this year, Globant  reported US$43.1 million in revenue, an increase of 26% from the same quarter last year. Its net profit also rose to US$3.4 million.

Globant revealed its plan to go public in 2011, saying it wanted to use the proceeds to bolster its international operations. It initially planned to list on the NASDAQ, but later opted for the New York Stock Exchange.

Earlier this month, the company said it was aiming to raise in excess of $80 million on the stock market.  Globant is the 14th company from Argentina to be traded on the exchange but the first Argentine technology firm to float shares in the U.S. capital market.

The vast majority of Globant’s revenue comes from North America. Therefore, analysts say, floating shares on the New York Stock Exchange will give a significant boost to its financial arm.

In its filing, the company said it would use the proceeds to pay debt and finance capital expenditures, strategic acquisitions and working capital. Underwriters include units of JPMorgan Chase & Co., Citigroup Inc. and Credit Suisse Group AG.

Globant is one of the most successful Argentine companies; it employs around 3,000 engineers, developers, marketing specialists and designers in 21 offices across 14 cities in Argentina, Brazil, Colombia, Uruguay, the United States and the United Kingdom.

Economic troubles in Argentina – which is risking going into a default after the U.S. court verdict over its dispute with so-called vulture funds– was expected to scare off investors at Globant IPO, but there has been no evidence of this to date.

However, in the prospectus for the IPO, Globant warned of the effects of high inflation, currency instability, capital controls and the shortage of credit availability to Argentine companies.