Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Uruguay's DLocal valued at nearly $9 billion in Nasdaq debut

Published 06/03/2021, 12:39 PM
Updated 06/03/2021, 01:20 PM
© Reuters.

© Reuters.

By Sohini Podder

(Reuters) -Shares of DLocal Ltd jumped nearly 48% in their Nasdaq debut on Thursday, giving the Uruguayan cross-border payments firm a market capitalization of about $9 billion.

The company's stock opened at $31, compared with the initial public offering price (IPO) of $21. DLocal sold 29.4 million shares in its IPO, raising about $617.7 million.

Of the shares sold, roughly 4.4 million shares were offered by the company, while the rest were sold by its existing investors.

Activity in the U.S. IPO market has picked up in recent weeks after a brief period of volatility that impacted several market debuts and forced some companies, including hear.com and Enact Holdings Inc, to put their listing plans on hold.

Benefiting from the improved sentiment and strong investor appetite for payment-focused companies, a clutch of startups such as Paymentus Holdings Inc and Flywire Corp has gone public recently. Another payments startup, Marqeta Inc, is set to make its stock market debut next week.

DLocal plans to use the IPO proceeds to add products to its platform and expand geographically, Chief Executive Officer Sebastián Kanovich said in an interview with Reuters.

Founded in 2016, the company has more than 330 merchants on its platform, including Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corp (NASDAQ:MSFT), and is present in over 29 countries. It generated revenue of $104 million last year.

In September, DLocal raised about $200 million in a funding round led by private equity firm General Atlantic that valued it at $1.2 billion, making it the first startup in Uruguay to achieve the unicorn status.

J.P. Morgan, Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) and Morgan Stanley (NYSE:MS) were the lead underwriters for the offering.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.