OVHcloud’s IPO Journey (A): Securing Board and Executive Alignment for Success

The case study highlights the strategic decision-making process, the challenges faced, and the importance of board and executive alignment in successfully navigating the complex journey to IPO. OVHcloud, a leading European cloud services provider founded by the Klaba family in 1999, launched an initial public offering (IPO) in 2021. The decision to go public was driven by the need to raise capital for product development, enhance brand recognition, and solidify its position as a global player. The process involved extensive preparation, including strategic planning, organizational restructuring, and careful selection of advisors. Despite a data center fire in 2020, OVHcloud persevered, demonstrating resilience and strong leadership. The board and executive team worked diligently to align on key decisions, including the complex process of determining the share price. Ultimately, OVHcloud's IPO on Euronext Paris raised €350 million, with a market capitalization of €3.48 billion, marking a major milestone in the company’s growth trajectory while maintaining the Klaba family's majority stake.

-Understanding the rationale for going public, including the strategic benefits such as raising capital for growth, enhancing brand recognition, and consolidating the company’s market position. -Evaluating the preparation and execution required for an IPO, including strategic planning, organizational restructuring, financial modeling, selecting the right advisors, and the overarching importance of aligning the board and executive team on the strategic plan and equity story. -Analyzing crisis management and understanding the impact of resilience and effective crisis management on IPO readiness and investor confidence. -Assessing financial and operational readiness, the need for robust financial control systems, compliance with international financial reporting standards, and a credible business plan with key performance indicators. -Exploring stakeholder alignment (between the founders, private equity funds, and management) on critical decisions like share pricing and long-term value creation. -Learning from real-world applications and gaining practical insights into the IPO process, the strategic decisions involved, and the potential challenges and solutions in taking a company public.