Published By : 13 Mar 2018 | Published By : QYRESEARCH
Dropbox, the San Francisco-based file hosting service provider, has set a price range of US$16 to US$18 per share, and is expected to raise up to US$648 mn in the highly anticipated public offering that is planned for March 16, 2018. This price range would increase the value of the company to US$7.1 bn, which, however, will be approximately 1/3rd below the valuation it had in 2014, displaying a clear sign of how enflamed the private tech market became a few years earlier. It is to be noted that the range serves as a guidance, and the firm will set a final price on the eve of the IPO launch based on the feedback of investors. “Upon the completion of the public offering, the company is all set to sell common stock worth US$100 mn at the IPO price to the Salesforce’s venture capital arm in a separate private placement,” stated the spokesperson of the company.
Dropbox has surfaced as the leading tech IPO across the world after a prolonged dry spell, owing to which, investors are watching it carefully for signs of how other prominent tech companies will be received in the public markets. Considering Dropbox as a barometer for public market sentiment, it seems that investors are not likely to endorse the valuations that a number of billion-dollar-plus startups are now commanding. The spring calendar for the technology offerings is comparatively busy, including the planned debut of Zscaler, a cybersecurity company, later this week and the expected listing of Spotify, a music company, early next month.