French cloud outage is worst possible IPO weather

  • 10/13/2021
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LONDON, Oct 13 (Reuters Breakingviews) - OVHCloud has given investors one more reason to think twice about its initial public offering. The French cloud-computing group, which wants to list with an equity value between 3.5 billion euros and 3.7 billion euros, on Wednesday said its network was down due to human error during the reconfiguration of a U.S. data centre. Its IPO is scheduled to price on Thursday. Founder Octave Klaba is no stranger to hitches: a fire in March took down four data centres in Strasbourg, France. That incident could end up costing the company 130 million euros after factoring in lost revenue, litigation provisions, impairment charges and the cost of reimbursing customers and replacing equipment. Prospective investors may already have been put off by weak governance rights and slow growth . Other recent IPO candidates, like Dutch online store Coolblue, have shelved their plans citing market volatility. OVHCloud may be next in line. (By Liam Proud) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: SAP cloud hype leaves its shares in the gutter read more Richard Li shows FWD investors a brighter sunset read more Climate for net-zero changes Down Under read more Supply chain pain is just one of ASOS’ concerns read more Green investors get timely reminder of their power read more Editing Peter Thal Larsen and Karen Kwok Breakingviews Reuters Breakingviews is the world"s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

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