BUZZ-DigitalOcean falls after boosted $800 mln stock sale

Reuters03-25
BUZZ-DigitalOcean falls after boosted $800 mln stock sale

** AI cloud platform DigitalOcean's DOCN.N shares down 6.6% at $79.28 premarket after above-target equity raise

** DOCN announces pricing offering of ~10.4 mln shares for approx $800 mln gross proceeds, up from planned $700 mln

** Offering price equates to $77, which is 9.3% discount to stock's last sale on Tues

** Co to use net proceeds to invest in additional infrastructure capacity, pay down term loan, and for general corporate purposes

** JP Morgan, Morgan Stanley and BofA joint bookrunners, joined by Goldman Sachs, Citizens Capital Markets and MUFG

** Broomfield, Colorado-based DOCN has ~92 mln shares outstanding

** Through Tues close, DOCN shares up 76.5% YTD

** Avg rating of 14 analysts is "buy"; median PT $76.50, per LSEG

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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