Dropbox to start trading after strong IPO

Alyssa Bailey
March 25, 2018

Dropbox exceeded its private valuation in its market debut, as shares soared after pricing above their marketed range in the biggest technology initial public offering of the year.

That's a surprising sign of strength for Dropbox - many observers expected the file-sharing company to not reach the last valuation.

Dropbox Inc.co-founder Drew Houston speaks in front of co-founder Arash Ferdowsi celebrate as Dropbox (DBX) is listed for the company's initial public offering (IPO) at the Nasdaq Market Site in NY, U.S., March 23, 2018. Dropbox on Thursday sold 36 million shares prices at $21 apiece. Dropbox shares are set to start trading on Friday at the Nasdaq under the symbol "DBX".

Dropbox was founded 11 years ago as a cloud storage tool. However, this amount still falls short compared to the $10 billion valuation it received during its last round of private funding in 2014.

The tech company declared itself cash-flow positive in 2016.

At its current share price, Dropbox is now a publicly traded behemoth with a market capitalization of $9.1 billion. Today, it offers a platform for businesses that enables collaborative editing of documents and other files. "We look at the iconic tech companies out there and majority had even more impact after they went public". The company's net loss shrank to 111.7 million Dollars previous year, compared to 210.2 million USD in 2016.

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The storage company has 500 million users and competes with Alphabet, Google, Microsoft, Amazon and Box.

Shortly after, Houston pitched his idea to Paul Graham of Y Combinator, a venture capital company that provides seed money to startups (Y Combinator has also invested in companies like Airbnb, Reddit, and Coinbase, among many others).

The cloud storage company's IPO was the largest tech offering since Snap Inc. went public a year ago.

Obviously, these IPOs are such interesting times for capitalists that they could (and also usually do) obtain a little carried away with themselves, and also in the weeks and also months that follow we might see the marketplace appropriate that rate to a much more secure number.

Like Snap, Dropbox warned potential investors that it may never be profitable.

Goldman Sachs, J.P. Morgan, Deutsche Bank and Allen & Co. were among the top underwriters for the company's IPO.

Other reports by GlobalViralNews

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