DigitalOcean, which offers cloud computing services and web development tools to SMBs, announced terms for its IPO on Monday.
The New York, NY-based company plans to raise $751 million by offering 16.5 million shares at a price range of $44 to $47. Tiger Global and insider Access Industries intend to purchase $175 million worth of shares in the offering. At the midpoint of the proposed range, DigitalOcean would command a fully diluted market value of $5.6 billion.
DigitalOcean is a cloud computing platform offering on-demand infrastructure and platform tools for developers, start-ups, and small and medium-sized businesses, or SMBs. Its platform simplifies cloud computing, enabling customers to accelerate innovation and increase productivity and agility. Over 570,000 individual and business customers currently use the platform to build, deploy, and scale software, with platform users including software engineers, researchers, data scientists, system administrators, students, and hobbyists. Customers are spread across over 185 countries, and around two-thirds of the company's revenue has historically come from customers located outside the US.
DigitalOcean was founded in 2012 and booked $318 million in revenue for the 12 months ended December 31, 2020. It plans to list on the NYSE under the symbol DOCN. Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Barclays, KeyBanc Capital Markets, Canaccord Genuity, JMP Securities and Stifel are the joint bookrunners on the deal. It is expected to price during the week of March 22, 2021.
