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

At the high end of that range, Dropbox would come out with a valuation of $7.9 billion, which is still below the $10 billion valuation it received with its last private funding round in 2014.

The IPO will be a key test of Dropbox's worth after it was valued at nearly US$10 billion in a private fundraising round in 2014. Adding in the value of restricted stock units lifts the company's valuation to around $8 billion.

According to data compiled by Bloomberg, Dropbox would be the third-biggest IPO from an enterprise technology company in the last three years and the largest tech offering since Snap's IPO last year. The company will sell $100 million worth of shares to Salesforce.com's venture arm at the same time of its IPO.

Dropbox has set a preliminary price range for its initial public offering of shares, meaning net proceeds of around Dollars 530 million for the cloud storage company.

Dropbox, a web-based cloud storage provider, announced terms for its IPO on Monday. The company is issuing 27 million shares, while current investors, including co-founders Drew Houston and Arash Ferdowsi, are selling nine million shares. Sequoia Capital, one of Dropbox's early investors, will own a 21.1 percent stake. There's a chance that some companies shy away from going public if they see companies like Dropbox are valued more highly when they stay private than when they go public.

Dropbox company has touted its business as a path to unleashing creative energy and inspired work.

In the latest prospectus, the company sounded confident: "We believe the need for our platform will continue to grow as teams become more fluid and global, and content is increasingly fragmented across incompatible tools and devices".

The company's net loss narrowed to $111.7 million in 2017 from $210.2 million in 2016.