Argentina’s Globant to hold IPO in first quarter of 2014

What? Buenos Aires-based technology-services provider Globant SA (GLOB) will hold its initial public offering early next year.
Why it matters? The company will sell shares on the New York Stock Exchange in early 2014 and consequently become a business model with dollar income outside Argentina.

Licensed :Creative Commons

Licensed :Creative Commons

The company will be selling shares on the New York Stock Exchange during first quarter of 2014. Globant is expecting to raise US $86.3 million in the IPO.

Globant would be the first Argentine company to go public since McDonald’s Corp IPO in March 2011.According Alejandro Bianchi, head of investment at Invertironline.com McDonald’s Corp benefited greatly by having most of its revenue outside Argentina away from currency controls and government intervention.

It has an optimal business model with income outside the country in dollars, which it only has to repatriate to pay local costs in pesos.[/comillas ]

The executive also said, “This is why it’s able to go to international markets, while probably a pure Argentine company couldn’t.”

Timing of the IPO has not yet been released.Offering’s profits will be used to pay debt and finance capital expenditures, strategic acquisitions and working capital. The IPO will count with sponsors such as JPMorgan Chase & Co., Citigroup Inc. and Credit Suisse Group AG among others.

Globant’s revenue increased to US $37.4 million in respect to the same period last year, with 82 percent coming from North America and only 5 percent from Argentina.


Editorial Staff

Portada Staff

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