Computing company OVHcloud IPO is set to move forward at the lower end of the price range

The logo of the French cloud computing company OVHcloud will appear on October 13, 2021 in the data center building in Strasbourg, France. REUTERS / Christian Hartmann

October 13, 2021

Richard Ruff and Matthew Rosemain

Paris (Reuters) – French cloud computing service provider OVHcloud’s IPO will move forward at the lower end of the range at a price of € 18.5 per share, one of its operating banks said Wednesday. rice field. For about 3.5 billion euros.

One lead underwriter said the IPO (which is likely to be one of France’s largest initial public offerings this year) has already been oversubscribed, but the book will not close until noon Thursday. ..

On October 5, OVHcloud, a European-based cloud service provider next to Deutsche Telekom’s T-system, set a price range of € 18.5-20 per share, according to Synergy Research. This brings the market value to 3.50. To 3.74 billion euros. The company did not immediately get comments on the possible consequences.

The company also said the new shares would raise around 350 million euros and the sale of existing shares by shareholders, including the Clava family, would account for an additional 50 million euros.

Since then, financial market volatility due to fears of inflation and potential monetary tightening, and troubles with Chinese real estate giant Evergrande have created uncertainty, and both France’s Icade Santé and Swiss Chronext have withdrawn their listing plans.

OVHcloud’s IPO is just two days before its scheduled listing on Friday, despite market uncertainty and news of a network outage on Wednesday.

Octave Klaba said on Twitter that the outage followed a “human error” when reconfiguring one of the US data centers. The network returned to normal at 0815 GMT, about an hour later.

This was the second big mess of OVHcloud this year.

In March, the company’s fire destroyed millions of websites, destroyed government portals, banks, shops, and news websites, and removed some of the .FR web space.

Some politicians see OVHcloud as an alternative to US giants Amazon Web Services, Microsoft’s Azure, and Google Cloud.

However, the company has so far lacked the scale and financial influence to squeeze the market share of these companies.

($ 1 = 0.8654 euros)

(Report by Richard Lough, Mathieu Rosemain, Matthieu Protard, Marc Angrand, Written by Mathieu Rosemain, Ingrid Melander, Geert De Clercq, Edited by Jason Neely and Philippa Fletcher)

Computing company OVHcloud IPO is set to move forward at the lower end of the price range

Source link Computing company OVHcloud IPO is set to move forward at the lower end of the price range

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