DigitalOcean rises after upsized $550 million convertible bonds offering

AI cloud platform DigitalOcean's DOCN.N shares rise 1.4% to $29.97

DOCN announces pricing of upsized offering of $550 million of convertible bonds due 2030

Offering boosted from initial size of $500 million

Stock closed down 10.6% at $29.56 on Monday after DOCN unveiled the offering

Initial conversion price of $39.17 apiece represents roughly 32.5% premium to the last reported sale price

Proceeds will be used to repurchase portion of its convertible bonds due 2026 and to pay cost of capped calls, derivative transactions to offset dilution

8 of 13 brokerages rate the stock "buy" or higher and 5 "hold"; median PT $38.50 - data compiled by LSEG

As of last close, DOCN stock down 13.2% YTD