DigitalOcean rises after boosted $800 mln stock sale

AI cloud platform DigitalOcean's DOCN.N shares reverse early losses and last up 1.2% at $85.90 on Weds after securing above-target equity raise

DOCN shares rise as much as 3% to $87.50

Co early Weds announced pricing offering of ~10.4 mln shares for approx $800 mln gross proceeds, up from planned $700 mln

Offering price of $77 represents 9.3% discount to stock's last sale on Tues

Co, which has 92 mln shares outstanding, to use net proceeds to invest in additional infrastructure capacity, pay down term loan, and for general purposes

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

Broomfield, Colorado-based DOCN on Feb 24 reported Q4 rev increased 18% y/y to $242.4 mln, topping LSEG consensus, and hiked 2026 and 2027 rev outlook citing growing AI traction

With move on the session, stock up ~78% YTD including ~53% gain this month

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