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Investing.com -- DLocal Limited (NASDAQ:DLO) stock fell 7.6% in after-hours trading on Wednesday following the announcement of a secondary offering of 15 million Class A common shares.
The technology-first payments platform disclosed that an entity associated with General Atlantic will be selling the shares. DLocal itself will not be selling any Class A common shares in the offering and will not receive any proceeds from the transaction.
The selling shareholder is expected to grant the underwriters a 30-day option to purchase up to an additional 2.25 million Class A common shares at the public offering price, less underwriting discounts and commissions.
This secondary offering represents a significant move by one of DLocal’s major investors to reduce its stake in the company, which appears to have triggered the negative market reaction in after-hours trading.
DLocal, which trades on the Nasdaq under the ticker DLO, provides payment processing services that enable global merchants to connect with consumers in emerging markets.
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