European cloud-service provider OVHcloud is shopping to launch an initial public offering which could value the company at $4.7 billion.
The company, which is based in France, offers storage, computing, and networking services to companies within North America, Europe, Singapore and Australia.
The company has high hopes for its potential IPO as the Covid-19 pandemic has skyrocketed the demand for cloud services across numerous sectors. However, investors are concerned that the company won’t be able to compete with heavily established organizations such as Microsoft, Amazon, and Google. Amazon’s cloud infrastructure accounts for over 40% of the global market with Microsoft taking up another 20%. If OVHcloud wants to stay competitive they will need to show investors that their technology can hold up to previously existing behemoths.
OVHcloud claims to be the biggest European provider of cloud-hosting services and is using this argument to focus its marketing efforts towards European-based companies stating that it is “a safe steward for data for European companies and governments that are concerned about the potential that U.S. authorities could access their information. This would allow European companies to remain independent from countries like the United States or China.
OVHcloud is owned by Octave Klaba and his family. If the company were to initiate an IPO Klaba has stated that he intends to maintain “substantial majority stake.” However, the possibility of an IPO is still undecided as Klaba is still gathering whether or not investors will be interested in the company.
Source: Wall Street Journal