DigitalOcean’s stock opens 12% below IPO price, then extends losses

DigitalOcean Holdings Inc. started its public life under water, as the cloud computing company’s stock opened 11.7% below its initial public offering price. The stock’s first trade was at $41.50 at 12:40 p.m. Eastern for 2.0 million shares, while the IPO priced at $47.00, which was at the high end of the expected range of between $44 and $47 a share. At the stock’s opening price, the company was valued at about $4.4 billion. The stock has extended losses since the open, to trade 14.8% below its IPO in recent midday trading at $40.87. The stock’s disappointing start comes on an otherwise weak day for recent IPOs, as the Renaissance IPO ETF dropped 2.8% in midday trading while the S&P 500 gained 0.6%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.