25 March, 2018
Co-founder Arash Ferdowsi's net worth climbed to US$1.1 billion Friday as shares of the file-sharing company jumped as much as 50 per cent on its first day of trading.
The San Francisco-based provider of data management services initially planned to price shares in a range of 16 to 18, but raised that to a range of 18 to 20 on strong interest from institutional investors.
Dropbox Inc. (NASDAQ: DBX) launched its initial public offering on Friday on the Nasdaq exchange, under the ticker "DBX". Dropbox gives away a basic level of storage for nothing but charges for premium services, including pricier business subscriptions. However, this amount still falls short compared to the $10 billion valuation it received during its last round of private funding in 2014. The new price range suggests the company could have a market capitalization of up to $8.7 billion and the IPO could raise up to $720 million.
Dropbox attracted many other investors such as Sequoia Capital and Accel Partners. Unlike many founders, the 35-year old is set to become one of a rare breed who takes their idea all the way to a public company. Its full-year net loss, meanwhile, almost halved to $111.7 million.More news: Footage Released of Florida Deputy Not Entering School During Shooting
Dropbox has 500 million users and competes with Alphabet Inc's Google, Microsoft Corp, Amazon.com Inc and Box Inc, which had a market value of about $3.1 billion as of Thursday's close.
While DropBox has revealed the total user count and the number of paying customers, many competitors don't reveal how many premium customers they have.
Once Dropbox goes public, what's next?
Like Snap, Dropbox warned prospective investors that it may never be profitable.
Goldman Sachs & Co LLC, J.P. Morgan, Deutsche Bank Securities, Allen & Company LLC and Bank of America Merrill Lynch are among lead underwriters to the offering.