Published: Mon, March 12, 2018
Business | By Kate Woods

Dropbox sees IPO price between US$16 and US$18 per share

Dropbox sees IPO price between US$16 and US$18 per share

Dropbox Inc. aims to raise as much as $648 million in its US initial public offering. That's well behind the $10 billion that it was valued at during its last round of private financing in 2014.

In an amendment to its February 23 S-1 filing, Dropbox said it will price shares at between $16 and $18 each and intends to raise up to $648 million.

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. Existing shareholders, including founders Drew Houston and Arash Ferdowsi, will offer another 9.2 million shares for sale, and the underwriters have an over-allotment option for 5.4 million more shares. 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.

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The Class A shares carry one vote each, while its Class B shares carry 10 votes each. Class C shares have no voting rights but may convert to Class A shares at any time.

The performance of Dropbox - along with Spotify, which is also expected to trade publicly in the early spring - will be watched closely by venture capitalists as the two marquee IPOs of the first half of the year. The reverse split allows the company to set a higher IPO price without diluting insiders' valuation. In the same period, the company's net losses shrank to $112 million from $210 million.

Dropbox claims more than 500 million users in more than 180 countries, but the less-good news is that only about 11 million are paying for the privilege. A meeting in NY is scheduled for Monday and in Boston later this week.

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Dropbox will list on NASDAQ under the stock ticker DBX.

Salesforce Ventures LLC has entered into an agreement with the company pursuant to which it has agreed to purchase $100,000,000 of Class A common stock in a private placement at a price per share equal to the initial offering price.

Goldman Sachs Group, JPMorgan Chase & Co., Deutsche Bank AG and Allen & Co. are leading the offering.

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