The NYT[1] has some important context missing in the WSJ summary:
At that price, the company will still be valued at $1.7 billion, but it is well below the $2.4 billion valuation sold to investors in a financing round last summer.
The float looks small though, so there's hope for last round's muppets.
Good post. I don't understand why they focused on share price. Companies routinely do reverse share splits pre-IPO to make the total number of shares what they need to be for the valuation divided by shares to equal $12-18. That point seems to be just a magical desired range for SaaS IPO's. Someone smarter than I may know the reason, but I think they could have hit nearly any share price they wanted to.
Comments
The NYT[1] has some important context missing in the WSJ summary:
The float looks small though, so there's hope for last round's muppets.
[1] http://dealbook.nytimes.com/2015/01/22/online-storage-provid...
Good post. I don't understand why they focused on share price. Companies routinely do reverse share splits pre-IPO to make the total number of shares what they need to be for the valuation divided by shares to equal $12-18. That point seems to be just a magical desired range for SaaS IPO's. Someone smarter than I may know the reason, but I think they could have hit nearly any share price they wanted to.
Thanks, we'll change the url to that from http://www.wsj.com/articles/box-inc-ipo-prices-at-14-a-share....