Box Just Raised Its IPO Price, Now Worth About $1.67 Billion

Aaron Levie Box CEO
Box CEO Aaron Levie Max Morse/Getty Images

Box raised its IPO price to $US14 a share, making it worth about $US1.67 billion, Reuters reported Thursday.

That’s slightly more than the initial pricing range of $US11 to $US13 a share Box had set in its S1 two weeks ago. At $US14 a share, Box will be able to raise $US175 million from its IPO.

Raising the IPO price usually means investor interest is high, so that’s good thing for Box. But the $US1.67 billion price tag is still far lower than what it was worth last July, when it raised $US150 million at a $US2.4 billion valuation.

If Box does go public Friday as planned, it would be a big moment for Box CEO Aaron Levie and his management team. It’s been nearly a year since Box filed its first S1, and it reportedly delayed its IPO multiple times blaming cooling market conditions.

In an interview with Business Insider in November, Box CEO Aaron Levie admitted the IPO process has been “unusual,” saying he wouldn’t have filed at the time he did if he had known what was going to happen to the market.

Box had $US153.8 million in sales in the first nine months of 2014. But that came at the expense of $US152.3 million in sales and marketing alone, which resulted in a total net loss of $US121.5 million.

In the S1, Box indicated that it has no plans of slowing its spending as it wrote, “We have invested, and expect to continue to invest, in our sales and marketing organisations to sell our services around the world.” It also wrote it does not expect to be profitable in the foreseeable future.

Box is expected to start trading Friday morning on the NYSE under the ticker symbol BOX.