Digital River Going Public
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In a move highly anticipated by stock watchers, Digital River, Inc. formally announced today an initial public offering of 3 million shares of common stock at $8.50 per share.
The IPO (Nasdaq:DRIV) is being handled through an underwriting group managed by BT Alex. Brown Inc., BancAmerica Robertson Stephens and Bear, Stearns & Co., Inc. The electronic software distribution firm said it granted the underwriters a 30-day option to purchase up to 450,000 additional shares of common stock to cover any over-allotments.
Proceeds of the offering will be used for general corporate purposes, including continued investment in product development, expansion of sales and marketing activities and working capital, the company said.
Shares were up to 9 1/2 in mid afternoon trading.