The long awaited IPO of Dropbox

22.03.2018 / 10:10

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Cloud storage firm Dropbox Inc raised the price range for its initial public offering by $2 on Wednesday as investors bid strongly for the first big tech IPO this year ahead of final pricing expected on Thursday.The company now expects the offering to be priced between $18 and $20 per share, up from its previous range of $16 to $18

The new price range suggests the San Francisco company, co-founded in 2007 by Andrew Houston and Arash Ferdowsi, will hit the public market valued at up to $7.85 billion and the IPO will raise up to $720 million.

Despite the bump in price, Dropbox's valuation is still well below the $10 billion that it commanded in a 2014 private funding round.

Music streaming service Spotify, valued at roughly $19 billion in the private markets, has also filed for a direct listing and will debut the NYSE on April 3.

A direct listing lets investors and employees sell shares without the company raising new capital or hiring a Wall Street bank or broker to underwrite the offering.

In contrast, Dropbox has hired the likes of JPMorgan and Goldman Sachs, among others, for its IPO. The stock will start trading on the Nasdaq on Friday.

Source: Bloomberg Pro Terminal

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The long awaited IPO of Dropbox

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