Are there any lock‑up agreements or insider selling restrictions that could impact future trading activity?
Lock‑up/insider restrictions – what we can infer
The release does not disclose any explicit lock‑up agreement for the General Atlantic‑affiliated selling shareholder. In most underwritten secondary offerings, the selling shareholder typically signs a lock‑up that prevents additional sales for 90‑180 days after the close to protect the post‑offering price. Because dLocal itself is not selling shares and receives no proceeds, the company has no direct incentive to impose a longer lock‑up on insiders, but the underwriters will almost certainly include a standard restriction in the prospectus. Until the filing (Form S‑1 or the final prospectus) is reviewed, we should assume a 90‑day lock‑up on the seller’s remaining stake and monitor any “sell‑through” clauses that could trigger further sales once that window expires.
Trading implications
The secondary dilutes the float by roughly 15 million Class A shares – about 5‑6 % of the current outstanding shares – without adding cash to the balance sheet, so the market may initially price‑in modest selling pressure. Technicals show dLocal trading near a recent resistance level around \$12.50 with a descending 20‑day moving average; a break above that level on strong volume could absorb the new supply, while a failure and a dip toward the 50‑day EMA (~\$11.60) would likely accelerate short‑term declines as the lock‑up period approaches its end.
Actionable insight
‑ Enter long positions only if the stock can breach the \$12.50 resistance on volume, indicating enough buying interest to offset dilution. Set a stop just below the 50‑day EMA (~\$11.60).
‑ If the price stalls below \$12.00 and approaches the lock‑up expiry (≈ 90 days from the offering close), consider scaling out or taking short positions, as any additional insider sales could add further supply. Keep an eye on the SEC filing for precise lock‑up terms and any “sell‑through” provisions that would affect future flow.