Dropbox Aims to Raise as Much as $648 Million in US IPO

Dropbox Aims to Raise as Much as $648 Million in US IPO

Cloud data service Dropbox aims to raise as much as $748 million through its initial public offering and a private sale of stock, according to an updated securities registration filed Monday.

Additionally, the document filed by Dropbox said that Salesforce's ventures arm, Salesforce Ventures, had agreed to buy $100 million (£72.1 million) worth of Dropbox stock.

A series of funding rounds had valued Dropbox at US$10 billion, but investment bankers were doubtful about matching that valuation.

Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest US enterprise technology companies to list domestically in several years.

In a filing with the SEC, Dropbox said it will sell 26.8 million Class A shares at Dollars 16-18 each. There are 19 pre-IPO decacorns at present and many are watching with bated breath to see how Dropbox will perform, particularly in the aftermath of Snap's IPO in March 2017 and the volatile results that followed. Each Class B share represents 10 votes. That technique essentially allows Dropbox to set a higher per-share price in its IPO without changing the economics of its previous owners or the company as a whole. On a fully diluted basis including stock options, the mid-range of the IPO price range gives the company a market capitalisation of around United States dollars 7.4 billion.

Meanwhile, Dropbox said it now has 11 million paying users, which is far less than the 500 million registered users who access its services for free.

The San Francisco-based company reported $1.1 billion in revenue past year, with a net loss of $111 million. A meeting in NY is scheduled for Monday and in Boston later this week. Instead, the company's shareholders will most likely see the value of their shares fall when Dropbox, under ticker symbol DBX, begins trading on the Nasdaq. Goldman Sachs, J.P. Morgan, Deutsche Bank, Allen & Company, BofA Merrill Lynch, RBC Capital Markets, Jefferies and Macquarie Capital are the joint bookrunners on the deal.

Related:

Comments


Other news