The main thing is participation: the CEO of Box talked about the value of an IPO, regardless of its outcome
Box - a service for cloud storage. Recently, the company's reputation was tarnished by a series of management mistakes and the sad consequences of an IPO.
“We have definitely broken firewood over the past year,” admits Box CEO Aaron Levy. “But it was a great experience.” Despite the fact that this experience was not entirely successful, Levy sees advantages over private companies, even in such ambiguous publicity.
Box has passed a thorny path to become a public company. Since the application for the IPO and the placement itself, 10 months have passed. This year, Box has reached its goal.
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Box poured 12.5 million shares into the market for a $ 14 initial offering, hoping to raise $ 175 million with a total business valuation of $ 1.67 billion. At the same time, the initial price range of placement offered by underwriting banks was from $ 11 to $ 13 per share - in this sense, Box played even more risky than it was originally intended. The risk paid off. Immediately after the opening of trading on Friday, the price of a single share rose to $ 20.
But even after the IPO, the problems did not stop. Due to errors in the company's financial statements, its quotes decreased by 17%. Further, the fall continued.
Looking back, CEO Box Aaron Levy recalls that he enjoyed every moment of that period. He believes that it was a period of "maturing" of the company, which is beautiful no matter what.
Levy points to the biggest advantage of the publicity of a technology company - the ability to make your business transparent to existing and potential customers. Despite the common opinion about the easy life of private technology companies, "unicorns" (with an estimate above $ 1 billion), the general director of Box insists on a more favorable position of a public company in collaboration with corporate clients.
“If you’re a GE or IBM CIO, you’ll want to be sure that you’re working with a company that will stay afloat in the long run,” Levy says.
On Wednesday, Box posted
its financial results for the quarter. The company's revenue exceeded analysts' forecasts. True, quotes by inertia continue to fall. Levy noted that such volatility is the price Box has to pay for the status change.
The company's net operating losses increased from $ 34.2 million to $ 37.9 million year-on-year. But the total revenue for the quarter reached $ 78.7 million, which is 38% more compared to the third quarter of last year.
“Some investors, looking at our losses, cannot understand how the company remains profitable,” Aaron Levy said proudly in an interview with Business Insider.
On November 19, Square processing company entered the IPO. She received a valuation of $ 2.9 billion. This is more than two times less than the October estimate. The price per share fell below the minimum of $ 11 and amounted to $ 9. The company put up for sale $ 243 million in securities. This is 25% less than the stated amount ($ 324 million).
The current situation exerts certain pressure on the founder and CEO of Square, Jack Dorsey. Maybe soon he will present his arguments, which inspire optimism about the fate of companies that have failed in the IPO.
“We have definitely broken firewood over the past year,” admits Box CEO Aaron Levy. “But it was a great experience.” Despite the fact that this experience was not entirely successful, Levy sees advantages over private companies, even in such ambiguous publicity.
Box has passed a thorny path to become a public company. Since the application for the IPO and the placement itself, 10 months have passed. This year, Box has reached its goal.
')
Box poured 12.5 million shares into the market for a $ 14 initial offering, hoping to raise $ 175 million with a total business valuation of $ 1.67 billion. At the same time, the initial price range of placement offered by underwriting banks was from $ 11 to $ 13 per share - in this sense, Box played even more risky than it was originally intended. The risk paid off. Immediately after the opening of trading on Friday, the price of a single share rose to $ 20.
But even after the IPO, the problems did not stop. Due to errors in the company's financial statements, its quotes decreased by 17%. Further, the fall continued.
Looking back, CEO Box Aaron Levy recalls that he enjoyed every moment of that period. He believes that it was a period of "maturing" of the company, which is beautiful no matter what.
Levy points to the biggest advantage of the publicity of a technology company - the ability to make your business transparent to existing and potential customers. Despite the common opinion about the easy life of private technology companies, "unicorns" (with an estimate above $ 1 billion), the general director of Box insists on a more favorable position of a public company in collaboration with corporate clients.
“If you’re a GE or IBM CIO, you’ll want to be sure that you’re working with a company that will stay afloat in the long run,” Levy says.
On Wednesday, Box posted
its financial results for the quarter. The company's revenue exceeded analysts' forecasts. True, quotes by inertia continue to fall. Levy noted that such volatility is the price Box has to pay for the status change.
The company's net operating losses increased from $ 34.2 million to $ 37.9 million year-on-year. But the total revenue for the quarter reached $ 78.7 million, which is 38% more compared to the third quarter of last year.
“Some investors, looking at our losses, cannot understand how the company remains profitable,” Aaron Levy said proudly in an interview with Business Insider.
On November 19, Square processing company entered the IPO. She received a valuation of $ 2.9 billion. This is more than two times less than the October estimate. The price per share fell below the minimum of $ 11 and amounted to $ 9. The company put up for sale $ 243 million in securities. This is 25% less than the stated amount ($ 324 million).
The current situation exerts certain pressure on the founder and CEO of Square, Jack Dorsey. Maybe soon he will present his arguments, which inspire optimism about the fate of companies that have failed in the IPO.
Source: https://habr.com/ru/post/296950/
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