With 12.5 million shares for sale, the initial public offering raised some $175 million that Box can now use to invest in its business, and a market capitalization of $1.6 billion.
By Friday afternoon, the stock — trading under the symbol “BOX” — had reached as high as $24.73 per share, or 77 percent above its IPO price.
“It was unbelievable,” said Steve Sarracino, a founder and partner at Activant Capital, noting that current prices were giving Box a valuation on a par with the $2 billion it saw in its last private funding round in July.
“We were watching closely because for the first time it looked like the public market was going to impose discipline on the private market, but they blew right through there. I don’t know if it’s good or bad, but it tells us the market is risk-on,” he said.
Wall Street’s warm reception can only come as welcome reassurance for Box, whose IPO journey has been a rocky one. After originally filing to go public last March, the company ended up postponing those plans, citing unfavorable market conditions.
Looking ahead, though, there’s no doubt Box will have to move quickly. Storage is a commodity business,analysts have noted, and Box will have to make sure customers see it as a provider of more than just storage.
Based on an assumed initial public offering price of $18.50 — the midpoint of the range — Twitter estimates the net proceeds from the sale of shares of common stock will be roughly $1.25 billion, the company said in documentsfiled with the U.S. Securities and Exchange Commission.
Some 80.5 million shares of common stock will be registered, according to the filing.
Releasing its IPO price range positions Twitter to begin its “road show,” seeking to raise funds from investors across the country. In documents filed last week, the company said it would list its shares under the ticker symbol TWTR on the New York Stock Exchange, representing a big win for the market over rival Nasdaq.
Twitter has yet to determine a date for the listing, though one report suggested Nov. 15 could be the day.
Twitter’s IPO is likely to be one of the hottest of the year and the most prominent in social media since Facebook went public last year. Twitter’s share price range will be markedly lower than Facebook’s, which priced its IPO at $38 per share.
Twitter filed for its highly anticipated public offering earlier this month.
The global leader in “daily deals” is now valued at almost $13 billion after saying it increased the offering by 5 million shares to 35 million in total and pricing them at $20 each, above an initial range of $16 to $18.
The debut of the three-year-old company, which sells Internet coupons for everything from spa treatments to nose jobs, is one of this year’s most closely watched. Its tiny float represents just above 5 percent of the company and helped drive up demand and price.
That constraint — one of the smallest floats of the past decade — should support Groupon’s share price when it begins trading on the Nasdaq on Friday under the ticker GRPN, analysts say.
But in the longer run, they cited concerns about competition from the deep-pocketed likes of Google and Amazon.com Inc; the need to spend continuously to drive user growth; and questions about accounting after the company altered its IPO filings twice to change the way it accounted for revenue.
“Groupon is expensive. The $12.8 billion valuation is only achievable because of the low float,” said Rob Romero, head of technology-focused hedge fund firm Connective Capital Management.
Beyond Friday, Groupon shares may prove volatile on concern about the company’s ability to generate long-term profit and revenue growth, plus the likelihood that existing investors will sell some of their holdings at some point.