DigitalOcean drops on $700 mln stock offering plans

AI cloud platform DigitalOcean DOCN.N shares down 8.5% at $76.66 post market on planned equity raise

DOCN commences $700 mln offering to invest in additional infrastructure, pay down term loan, and for general corporate purposes

JP Morgan, Morgan Stanley and BofA joint bookrunners

Broomfield, Colorado-based DOCN has ~92 mln shares outstanding for ~$7.8 bln market cap

DOCN shares ended down 1.3% at $84.92 on Tues, trimming YTD gain to 76.5%

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