Published By : 26 Mar 2018 | Published By : QYRESEARCH
In its market debut, Dropbox toppled its private valuation, as shares soared after pricing much above their marketed array in the largest technology initial public offering (IPO) of 2018. On Friday, Mar 23, 2018, the shares closed at US$28.48 a piece in New York, giving the file sharing firm a market valuation of US$11.2 bn. The shares climbed as much as 50% more than their IPO price in the earlier trading and touched US$31.60 mark. In the last private funding round of Dropbox, which took place four years ago, it was valued at US$10 bn. The enthusiastic response of investors to the IPO could assist in clearing one roadblock that has been holding the Silicon Valley companies back from going public.
After targeting a market value of only US$7.1 bn initially, a strong demand for Dropbox shares helped in closing the gap as its IPO priced more than the marketed range. On Thursday, the company sold 36 mn shares for US$21 a piece, raising US$756 mn, after offering them for US$18 to US$20 a piece – already with a raise from the original price array. Investors were agreeing to pay up even as equity markets, particularly technology stocks, tumbled down, sending the NASDAQ 100 Index on its sharpest decline in the last six weeks. As Dropbox jumped up on Friday, all of the prominent US indexes clocked a decline. The company appears to have overcome the alleged down round at its IPO, in which a firm’s debut market valuation fails to stand firm to its fundraising promise.