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European cloud provider goes public at $4.7b  INTL

European cloud provider goes public at $4.7b  

Amazon (AMZN), Microsoft (MSFT), and Google (GOOGL) account for $6 in every $10 spent globally on public cloud infrastructure. With these stats at hand, it’s hard to imagine a company that can gather enough resources to challenge these tech giants. However, just as the story of David versus Goliath teaches us, it’s never too late to try. 

A company that is indeed trying is OVH Group. The French cloud service business is eyeing a $4.7b IPO in Paris to finance its competition against Amazon — the market leader in France. OVH was valued at $1b in 2016 when investment funds KKR and TowerBrook took a 20% stake in the business. The company is now looking to raise at least $470m from its IPO. After the listing, the Klava family will keep a majority stake in the company.  

why it matters

At first sight, OVH Group's story seems like a fairy tale destined to be crushed by the harsh realities of the real world (aka the tech giants dominating the market). But, as OVH Cloud provides services to no other than Michelin and the French Presidential palace, a local company may pose certain advantages that aren't to be underestimated.