Argentinean IT consultant Globant has put up for sale two million common shares, saying it would use the proceeds for funding operational expenses as well as future acquisitions.
In addition, the IT provider has agreed to grant the underwriters a 30-day option to purchase up to 300,000 additional shares at the public offering price.
“Globant intends to use the proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures,” the company stated in a press release.
The offering, however, gives rise to speculation that the company could be inching closer to an acquisition deal. In the statement, the IT firm indicated that it might “use a portion of the proceeds from this offering” to fund acquisitions.
Around 10 months ago, Globant sprang a surprise by acquiring its Argentinean rival Belatrix, gaining enormous clout in the IT services market of the Spanish-speaking world.
In the months following the acquisition, its stock price went up by more than 40%. The share price has continued its way up despite the COVID-19 pandemic wreaking havoc in the capital market.
The company generated US$191 million in revenue for the first quarter of this year, a stunning 31% year-over-year growth.