Argentina-based software developer Globant has become the first Latin American company to float on the New York Stock Exchange in a $58.5m initial public offering in which marketing firm WPP invested approximately $7m.
Globant priced the IPO at $10.00 per share, issuing 4.35 million shares while shareholders sold a further 1.5 million.
WPP invested $70m in Globant January 2013 and held a 20.6% stake ahead of the flotation, maintaining a 20.1% share through the purchase of almost 70,000 shares.
Venture capital firms Riverwood Capital and FTV Capital had jointly invested $13m in December 2008 and a further $15m in March 2011. Riverwood sold almost $6m in shares and holds a 23.8% stake post-IPO, while FTV sold $3.4m and will retain a 14.6% stake.
Globant’s shares closed at $11.25 on its first day of trading, after having risen by 30% at one point. The IPO valued Globant at $400m.
Globant develops software for cloud computing, social media, gaming and big data clients including internet company Google, professional online networking site LinkedIn and games developer Electronic Arts.
The underwriters for the offering are J.P. Morgan Securities, Citigroup Global Markets, Credit Suissse Securities, William Blair, Cowen & Company and Loyal3 Securities.