AgileThought goes down 25% after it announced public offering

By: Ruchi Gupta
Ruchi Gupta
Ruchi takes fitness and maintaining a healthy lifestyle very seriously. During her spare time, she enjoys swimming, running, and… read more.
on Dec 22, 2021
  • AgileThought to use around 60% of the net profits to repay part of its outstanding debt.
  • AgileThought has given the underwriters about 30 days additional shares worth 534,106.
  • Public offering price set at a total of $25 million,

AgileThought (NASDAQ: AGIL) is a world-renowned provider of custom software development, digital transformation services, and next-gen tech. The company went down 25% after it announced its public offering of Class A Common Stock shares of about 3,560,710. Each share is priced at $7.

The company’s aggregate gross profits will come to roughly $25 million. However, this is without the underwriting commissions and discounts. Therefore, AgileThought is offering all the shares. 

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Details of agreement

The company expects to close the offering by around December 27 this year. However, this will still be following the customary closing conditions. 

The company wants to use about 60% of the net profits it gets from this public offering deal to settle part of its outstanding debt. Alliance Global Partners (AGP) will be book-running the management of this public offering deal by itself. 

According to the company’s Form S-1 registration form, the offering is being made, which AgileThought already filed with the SEC (Securities and Exchange Commission). 

The company’s investor composition 

A look at AgileThought’s stockholders will tell you how powerful the company is. However, the truth is, this company isn’t huge compared to global standards. Meaning not many institutional investors will be attracted to it. 

AgileThought Inc already has organizations listed on the share registry. This suggests that it has got some credibility as far as professional investors are concerned. However, that doesn’t still change the fact that sometimes compay’s make bad mistakes when it comes to investments. 

It was easy to notice this with how the share price plummeted so fast after the announcement it made today. 

While defining company insiders is a little subjective sometimes, almost everyone in the world considers BoD company insiders. Management has to listen to what the BoD decides and this was a unanimous decision by the board. The board supposedly owns about $81 million worth of the company’s shares.  

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