Dropbox set for $9.2bn valuation during IPO
- Author: Rogelio Becker Mar 26, 2018,
Mar 26, 2018, 0:44
Shares were trading at $29.35, up 39.4% in NY, after touching $31.60 earlier in the session. Dropbox shares surged yesterday as the cloud data storage firm made its Wall street debut following a public offering raising some US$750 million (RM2.9 billion). By the end of trading on Friday, shares closed at $28.42, marking a gain of more than 35% over the IPO price, even as the wider USA stock market slid.
The company has yet to turn a profit, but its revenues have grown rapidly over the past few years from $603 million in 2015 to over $1 billion in 2017.
"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".
Experts say that consumers will be less interested in beginning with Dropbox for their cloud storage because it has the least liberal terms among its competitors like Google, Amazon, Microsoft, and Apple. Although the paying user base is small, Dropbox forecasts that out of the 500 million, 300 million users are more likely to become paying users in the future due to their characteristics such as email domains, devices and geographic attributes. That's more than expected, especially given the original range of $16 to $18 a share last week, which was raised a couple of dollars this week. The company that owns social media platform Snapchat is now trading slightly below its IPO price of $17 per share. The IPO is believed to be one of the biggest tech IPOs from 2017 Snap and raised about $3 billion. Originally, the company expected to raise $756 million, in addition to Salesforce.com Inc.'s $100 million investment through a private placement. It is the biggest stock debut since Snap Inc (SNAP.N) accumulated $3.9 billion in its debut previous year.
Despite the size of the offering, co-founder Drew Houston (pictured) isn't losing much control to public investors.
Goldman Sachs & Co LLC, J.P. Morgan, Deutsche Bank Securities, Allen & Company LLC and Bank of America Merrill Lynch are among lead underwriters to the offering.
Once Dropbox goes public, what's next? Its full-year net loss, meanwhile, almost halved to $111.7 million.
The company will also use this time in the limelight to inform users of its different functions.
"We are excited to welcome Dropbox to the Nasdaq family of innovative companies".