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Dropbox IPO Pricing At $21 Per Share

25 March, 2018, 01:48 | Author: Shawna Walton
  • Dropbox valued at $8.2bn as much-anticipated IPO finally arrives

"It's a tremendous opportunity for us to talk about who Dropbox really is and this evolution of the company from keeping files in sync to keeping teams in sync".

The last so-called tech unicorn to hit the market was Snap Inc last March, and the Snapchat owner is now trading roughly 4 percent below its $17 IPO price.

Dropbox's initial public offering could pave the way for other unicorns to soon go public, letting their early investors and founders cash in on huge investment gains that now only exist on paper.

Dropbox's initial offering price range for its IPO was in a range of $16 to $18 per share.

Dropbox went public with multiple share classes, which gave more voting rights and control to executives.

But the stock, which is trading under the ticker symbol DBX, opened at $29 and then continued to climb, rising to around $31 a share 15 minutes into its trading session.

Dropbox surged by as much as 44% during its trading debut on Friday, marking a strong start to the most prominent tech initial public offering so far this year.

Venture capital firm Sequoia Capital will retain a stake of about 25 percent.

The 11-year-old company reported revenue of $1.11 billion in 2017, up from $844.8 million a year earlier.

Andrew W. "Drew" Houston, the co-founder and CEO of Dropbox. The new price range suggests the company could have a market capitalization of up to $8.7 billion and the IPO could raise up to $720 million.

Dropbox has 500 million users and competes with Google, Microsoft and Amazon. Bloomberg also noted that "Dropbox has shifted to focus on selling its cloud service to larger businesses, which has helped boost revenue". The stock now trades near 11.40, up 0.8%. Its full-year net loss almost halved from the $210.2 million in 2016.

"They talked for two hours back in Boston and "got married on the second date", as Houston describes it. Ferdowsi dropped out of school with just six months to go [to work full-time on Dropbox]".

The underwriters for the offering are Goldman Sachs, JPMorgan, Deutsche Bank, Allen, Merrill Lynch, RBC Capital Markets, Jefferies, Macquarie Capital, Canaccord Genuity, JMP Securities, KeyBanc Capital Markets and Piper Jaffray.

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