Dropbox has to lower its IPO sights

Dropbox has to lower its IPO sights

Dropbox has to lower its IPO sights

One of the main questions in the run-up to Dropbox's IPO was whether investors consider the company more akin to file-storage rival Box (currently worth $2.8 billion on the public markets), or more of an enterprise collaboration software company, which could carry a higher valuation. Including restricted stock units, that range is $6.7 billion to $7.6 billion.

"The midpoint of those pricing estimates mean the company would be valued at $7.5 billion".

Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest U.S. enterprise technology companies to list domestically in several years. -- who have both traded below their last private valuation - are fresh in investors' memories.

The company plans on offering its 36 million IPO shares at between $16 to $18 a share, according to its filing with the Securities and Exchange Commissions.

Salesforce Ventures also has been shown to have entered into an agreement with Dropbox to purchase $100 million of the Class A common shares in a private placement at a price per share equal to the initial offering price. This partnership will enable companies to work together and connect with their customers across service, sales, commerce, marketing, etc. more deeply.

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Chief Executive Officer and co-founder Drew Houston will hold 22 percent of the shares outstanding after the offering, or 24 percent of the voting power, according to the filing.

The pair started Dropbox in 2007. Also, Salesforce Ventures has invested in Dropbox since 2014.

The San Francisco-based company, which says it has over 500 million users, is expected to go public this week.

The company's net loss narrowed to US$111.7 million in 2017 from US$210.2 million in 2016. Goldman Sachs, J.P. Morgan, Deutsche Bank, Allen & Company, BofA Merrill Lynch, RBC Capital Markets, Jefferies and Macquarie Capital are the joint bookrunners on the deal.

The goal is to have these shares listed on the Nasdaq Global Select Market under the symbol "DBX".

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