Published By : 23 Mar 2018 | Published By : QYRESEARCH
The initial public offering (IPO) of Dropbox, the leading tech stock debut in over a year, is priced at US$21 per share, announced the company announced on Thursday. At US$21, the company’s shares are priced higher than expected. It will have a market cap of nearly US$9.18 bn on a fully diluted share count. On Wednesday, the San Francisco-based company increased the anticipated price range by US$2 from US$18 to US$20 a share, on account of its strong demand.
The IPO increased around US$756 mn, becoming the biggest tech IPO, since Snap Inc. reached US$3.9 bn in its debut in 2017. The share of Dropbox are all set to begin trading on Friday, March 23, 2018 at the NASDAQ with “DBX” as its symbol. The robust pricing argues well for various other highly anticipated IPOs of tech giants as well as startups, which are valued at over US$1 bn.
Leslie Pfrang, a researcher at Class V Group, an IPO advisory company, stated that pricing above the revised array points towards more demand in comparison to the supply for growth technology IPOs, particularly those, which are generating a positive free cash flow. Spotify Technology SA, a music streaming company, is slated to make a direct listing of shares on the NYSE on April 3, 2018. Dropbox, with 500 mn users, competes with Amazon, Microsoft, Google, and Box, which had a market value of nearly US$3.1 bn till Thursday’s close.