DigitalOcean announces $700M common stock offering

DigitalOcean (DOCN) Holdings announced that it has commenced an underwritten public offering of $700M of its shares of common stock. DigitalOcean intends to use the net proceeds from the offering (i) to make investments in additional infrastructure capacity, beyond what it has previously communicated, to support customer demand for DigitalOcean’s cloud / AI platform, (ii) to strengthen its balance sheet by paying down its existing Term Loan A, and (iii) for general corporate purposes. DigitalOcean is in advanced discussions to secure this additional data center capacity to support its growth. J.P. Morgan, Morgan Stanley and BofA Securities are acting as joint book-running managers for the offering.