DigitalOcean Holdings Inc. DOCN, said its initial public offering priced at $47 a share late Tuesday, the high end of its proposed price range, with the New York-based cloud computing company offering 16.5 million shares to raise $775.5 million at a valuation of $4.95 billion. The stock will start trading later Wednesday on the New York Stock Exchange, under the ticker “DOCN.”
Morgan Stanley, Goldman Sachs and JP Morgan were lead underwriters on the deal. Proceeds of the deal will be used for working capital and general corporate purposes. The company recorded a net loss of $43.6 million on revenue of $318.4 million in 2020, after a loss of $40.4 million on revenue of $254.8 million in 2019. The company is looking to go public at a time that the Renaissance IPO ETF IPO, -2.12% has fallen 2% in the year to date, while the S&P 500 SPX, 0.45% has gained 4%.