First big IPO of 2015: Box (finally) goes public

Aaron Levie is the CEO and co-founder of Box, an enterprise cloud storage company that debutes as a public company on Friday.

NEW YORK (CNNMoney)

A year after it first began the process of going public, Box is debuting on the New York Stock Exchange on Friday under the ticker symbol "BOX."

Keep a close eye on Box (BOX) because its initial public offering -- the first high-profile one of 2015 -- could prove to be a trial balloon for investors' appetite for risk, especially given recent turbulence in the financial markets.

Related: 16 companies worth over $1 billion to lose money

What is Box? Think of Box as the business-friendly version of DropBox. It uses cloud software to provide online storage services that cater to companies.

It wanted to go public last year, but had to delay the offering due to market turbulence and questions about when it will gain profitability.

Late Thursday Box priced its initial public offering at $14 per share. That means there's lots of demand for Box shares because the company anticipated going public at $11 to $13. The company likely benefited from investor euphoria over the European Central Bank's big stimulus plan announced earlier on Thursday.

Related: European Central Bank unveils big new stimulus program

How will it turn a profit? The IPO values Box at about $1.6 billion -- even though it remains unprofitable. The deal raised $175 million, which is less the $250 million it hoped to raise last year.

Still, Box can use the new cash to fund its expensive business model. Like other cloud companies, Box is grappling with heavy costs and marketing expenses. It faces steep competition from deep-pocketed tech giants Microsoft (MSFT, Tech30) and Amazon.com (AMZN, Tech30).

Led by co-founder Aaron Levie, Box is plotting to expand its business by specializing in specific areas like healthcare and legal.

First Published: January 23, 2015: 9:53 AM ET

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