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

Dropbox The company everyone wants to kill

From Dropbox via CNN

Dropbox also agreed to sell $100 million in stock to Salesforce.com Inc.'s venture capital arm in a private placement concurrent with the IPO, the filing shows.

That's after the storage company disclosed Monday that it would sell new shares at between $16 and $18 a share, meaning Dropbox would be valued at around $7 billion at the high end of the range.

As a result, the IPO will be among the largest tech market debuts since Snap in March of 2017.

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

Dropbox, based in San Francisco, was founded in 2007 by a couple computer science students from MIT, Drew Houston and Arash Ferdowsi. Class A shares will have about 2% of voting power and Class B shares about 98%. The latter company is both an investor in Dropbox and an important partner, with the two having announced a collaboration just last week to tighten the integration between their services.

Android Wear rebranding underway it seems, get ready for Wear OS
Android Wear might also get a new Google Assistant like logo, with "W" letter as indicated in the Reddit post. Meanwhile, you should know that Google has recently announced the update for Android smart wearables.

In that regard, the Salesforce investment and integration, and its timing of being announced alongside the sober IPO range, is a notable vote of confidence in Dropbox. It has more than 500 million registered users, including 11 million paying users.

Many will be watching Dropbox's IPO to see if it stands up longer term and becomes a bellwether for the fortunes and fates of many other outsized "startups" that many have also expecting to list, including those that have already filed to go public like Spotify, as well as those that have yet to make any official pronouncements, like Airbnb. The company posted revenue of $1.1 billion on a net loss of $111.7 million. Their schedule begins with meetings in NY on Monday, then in Boston later this week, a person familiar with the schedule said.

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

Dropbox shares will trade on the Nasdaq under the ticker symbol DBX.

Latest News