Box revs up IPO engines, hopes to raise up to $187M this month

Jan 12, 2015
Austin Business Journal

Box Inc. on Friday revved up its long-postponed plans to go public, setting terms for an IPO that is expected to come during the week of Jan. 19

The Los Altos, Calif.-based cloud storage and collaboration company that's expanding quickly in downtown Austin updated its filing with the Securities and Exchange Commission on Friday, saying it hopes to sell 12.5 million shares at a price range of $11 to $13

Adding in an allotment for underwriters, Box — led by CEO Aaron Levie — said it hopes to raise up to about $187 million

That's more than it targeted the last time it put a total figure on an IPO filing. Back in July, the company said it hoped to raise up to $150 million

But the new number is less than the amount Box had hoped to raise when it first disclosed its plans in March. The original target was to raise up to $250 million

A downward shift in enterprise software stocks last spring put Box's IPO plans on hold until now. The company raised $150 million in new private funding in July at a reported valuation of about $2.4 billion

The new filing would put Box's valuation much lower than that, at as much as about $1.6 billion

Levie showed a sense of humor about Box's long delay in going public, tweeting on Friday, "Well that certainly took a while."

The financial details in the new filing are the same as the figures it posted last month when the company said revenue rose 70 percent to $57 million in the quarter that ended in October, compared with the same quarter the year before. That's down from an 81 percent growth rate in the prior quarter

Box narrowed its net loss to $45.4 million from $51.4 million a year ago

The company appears to have slowed the pace of its hiring last year. In its filings it showed 1,131 employees at the end of October, up 115 from April. That's down from adding 159 workers between January and April.

Box raised about $559 million since it was founded in 2005. Its biggest stakeholders are Draper Fisher Jurvetson (25.2 percent), US Venture Partners (12.8 percent), General Atlantic (8.4 percent), Scale Venture Partners (7.4 percent), Bessemer Venture Partners (5.5 percent) and Meritech Capital Partners (5.1 percent)

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