Texas entrepreneurs could find a cloud-storage provider's IPO interesting. Box Inc. is based in Los Altos, California, and they originally filed for their initial public offering in March 2014. There have been a few delays in their IPO plans, but it is now moving forward as expected.
They have valued their IPO at $1.6 billion and, according to Bloomberg-compiled data; the offering is scheduled for Jan. 22. They also raised approximately $150 million via private funding in July 2014. This gave Box the capability of postponing their IPO until 2015 based upon the volatility of the market in 2014.
The Box IPO valuation is approximately 33 percent lower than it was back in July when it was valued at $2.4 billion. That valuation was set by investors like Coatue Management LLC and TPG Capital. This information comes from individuals who were familiar with their planned IPO issue.
Box currently has 32 million registered cloud content storage users. The symbol for their stock on the New York Stock Exchange will be 'BOX", and it will be managed by JPMorgan Chase & Co., Credit Suisse Group AG and Morgan Stanley. As per their prospectus, some of their major competitors are Dropbox Inc., Citrix Systems Inc., Microsoft Corp., EMC Corp., and Google Inc.
When people who own a business decide to take their company public, it is a major decision. Consulting with a business and commercial law attorney could be beneficial in determining if an IPO is advisable at the time. An attorney could also help work out a viable business strategy for the overall benefit of the company.
Source: Bloomberg Businessweek, "Box Seeks Valuation of as Much as $1.6 Billion in U.S. IPO", Leslie Picker , Jan. 9, 2015