DuPont Fabros Technology (DFT) said today that it expects to raise up to $304 million through a stock offering. The company priced 12 million shares at $23.00 per share, and the underwriters have been granted a 30-day option to buy up to 1.8 million shares to cover overallotments. The offering is expected to close May 18, the company said.
DFT originally planned to offer 11 million shares with a potential overallotment of 1.65 million, suggesting that there was strong interest in the company's shares. After the pricing was announced, DuPoint Fabros shares climbed to $24.60 in afternoon trading, a gain of nearly 6 percent on the session.
The company will use the proceeds from the stock sale to fund the construction of a project in Ashburn, Va. known as ACC6, as well as its first Silicon Valley facility in Santa Clara, Calif., which will be known as SC1. Both projects allow DuPont Fabros to bring new data center online in markets where quality wholesale space is in short supply.