DigitalOcean Holdings, Inc. is offering 12,543,915 shares of common stock in a registered direct offering.

The company priced the shares at $117.54 each.

Gross proceeds from the sale are expected to reach approximately $1.474 billion.

DigitalOcean estimates net proceeds of $1.470 billion after accounting for expenses.

The company will use the funds to repurchase a majority of its 0.00% Convertible Senior Notes due 2030.

This strategy aims to reduce net leverage while maintaining the current cash position and share count.