Box Said to Hold Off on IPO Until June as Tech Stocks Tumble
Box Inc., the cloud-storage provider that filed for an initial public offering last month, is waiting until the market improves before kicking off a promotional tour, people familiar with the matter said.
Box, led by Chief Executive Officer Aaron Levie, may need to wait until June before officially marketing the deal to investors, said the people, who asked not to be named because the process is private. Los Altos, California-based Box filed to raise $250 million in an IPO on March 24, using that figure as a placeholder without giving the number of shares or price.
The Bloomberg Americas Software Index of 50 companies from Microsoft Corp. to Salesforce.com Inc. declined 3.4 percent in April as investors ditched technology stocks in favor of companies with more stable earnings. Technology companies such as Candy Crush maker King Digital Entertainment Plc and network-service provider A10 Networks Inc. have slumped since their debuts.
“Our IPO has never had a set date,” Ashley Mayer, a spokeswoman for Box, said today in an e-mail. “Since filing, we’ve planned on going when it makes the most sense for the market. That plan hasn’t changed.”
Box publicly disclosed its prospectus on March 24 after filing confidentially through the Jumpstart Our Business Startups, or JOBS, Act. The law requires Box to wait at least 21 days after the document becomes public before beginning a promotional tour.
Box’s IPO delay was reported earlier by Quartz.
To contact the editors responsible for this story: Mohammed Hadi at firstname.lastname@example.org James Callan