Given that the company receives no proceeds, what are the implications for DLO's cash‑flow outlook and future capital‑raising plans?

Cash‑flow outlook: Because the secondary‑offering is being executed by a selling shareholder and not by the company itself, DLocal will not pocket any of the $12.75‑per‑share proceeds. Consequently, the transaction does not augment the company’s balance sheet or fund its near‑term working‑capital, R&D, or expansion needs. Investors should therefore treat DLO’s cash‑flow profile as unchanged –‑‑still dependent on the internal generation of merchant‑‑processing revenue and any existing credit facilities. The added float will, however, increase liquidity for the stock, which may modestly improve market depth and reduce the bid‑ask spread, but it does not relieve the firm from any financing constraints it may be facing.

Future capital‑raising plans: Since DLO cannot tap this offering for capital, the market will look for other sources if the company needs additional funding—e.g., a primary equity raise, convertible debt, or a strategic partnership. The fact that the selling shareholder is willing to unload 15 MM shares (and potentially 2.25 MM more under the underwriters’ option) suggests a planned liquidity event rather than a distress‑driven sale, which can be positive for the perception of the company’s long‑term value. However, analysts and traders should stay alert to any management commentary about upcoming financing initiatives; the lack of new cash from this transaction could force DLO to schedule a primary offering sooner rather than later if its growth trajectory requires more runway.

Trading implications:

- Technical view: The $12.75 pricing sets the immediate reference point. With the added float, the stock should find support around this level; a break below could signal insufficient buying pressure, while a firm hold above may attract breakout‑type trades.

- Actionable stance: In a neutral‑to‑slightly bearish market environment, consider selling short or tight‑‑stop‑‑loss longs near $12.70, given the company’s unchanged cash position. In a risk‑‑on setting with sufficient demand for fintech exposure, a light‑‑position long above $13.00 could capture upside from the expanded liquidity and any forthcoming primary capital‑raising announcements. Monitoring the underwriters’ 30‑day option activity will also be key—heavy uptake could indicate strong market appetite, which may prompt DLO to consider a primary raise on more favorable terms.