France's Ovhcloud aims to raise $470 million

French cloud computing services firm Ovhcloud aims to raise 400 million euros (US$469 million) by selling new shares in an initial public offering (IPO) in Paris, it said yesterday.

Releasing its IPO registration document, the company said it hoped the flotation would accelerate its growth – consolidating its leading position in Europe while helping it to continue expanding in North America and Asia.

French politicians have championed Ovhcloud as a possible alternative to US cloud services providers, but it has so far lacked the scale and financial clout to dent their market share.

Ovhcloud did not provide details on the timing of the IPO, nor on its expected valuation.

The Wall Street Journal reported on Sunday the deal could value the company at more than $4.7 billion.

Ovhcloud had announced IPO plans in March, two days before a major blaze destroyed one of its data centres in eastern France that led to a delay. In June, the company re-committed to an IPO, but provided no timetable.

It joins a flurry of recent flotation announcements on the French market, including from Icade Sante, the healthcare property business of French real estate firm Icade.

Family-owned Ovhcloud added it was targeting revenue growth of 10-15 per cent for 2022 and organic revenue growth rate in the mid-twenties by 2025.

These targets would be achieved while maintaining an adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) margin in line with that in fiscal 2020, it said.

No dividend payments were anticipated in the mid-term with cash-flows expected to be re-invested, it added.

Following the IPO, the Klaba family will retain a substantial majority stake in Ovhcloud.

Based in Roubaix near Belgium, Ovhcloud employs 2,450 people and has more than 30 data centres worldwide.