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.