MercadoLibre, Inc. (NASDAQ: MELI), a Latin American large e-commerce technology company, intends to offer approximately US$1 billion of common stock.
The company also intends to grant the underwriters a 30-day option to purchase up to $150m of additional shares of common stock.
In addition, MercadoLibre has entered into an agreement pursuant to which PayPal has committed to make a $750m strategic investment through the purchase of common stock.
In a separate agreement, an affiliate of Dragoneer Investment Group has agreed to purchase $100m of Series A perpetual convertible preferred stock.
The PayPal and Dragoneer investments are contingent upon the closing of the public offering and are expected to close at the same time or shortly after the public offering.
The company intends to use the proceeds to continue expanding its e-commerce platform, to strengthen its logistics infrastructure, and to invest in solutions that further solidify its position as a provider of inclusive end-to-end financial technology and payments solutions.
Founded in 1999 and led by Marcos Galperin, CEO, Mercado Libre is an e-commerce company operating in Latin America. Through its six integrated ecommerce platforms including MercadoLibre, MercadoPago and MercadoEnvíos, it offers technology solutions that enable companies and individuals to buy, sell, announce, send and pay for goods and services over the internet.