Dropbox aims to raise $748m through IPO

Andrew Cummings
March 12, 2018

Monday's SEC filing, which also mentioned the sale of $100 million in stock to the venture capital division of Salesforce.com, begins a period in which bankers and Dropbox executives will market shares.

The San Francisco, CA-based company plans to raise $612 million by offering 36 million shares (25% insider) at a price range of $16 to $18.

Dropbox's S-1 form Dropbox that it filed with the Securities and Exchange Commission showed that it lost $111 million (£80.1 million) on revenue of $1.1 billion (£793 million) past year.

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.

Drew Houston, the founder and CEO of Dropbox, at the annual Allen & Company Sun Valley Conference in 2016 in Sun Valley, Idaho. Last week, the companies announced a partnership to integrate and sell Salesforce's customer relationship management technology with Dropbox's storage and collaboration tools. Class C shares have no voting rights but may convert to Class A shares at any time.

Dropbox also will reverse-split the current shares outstanding to inside investors at a ratio of 1.5 to 1.

The San Francisco-based company reported $1.1 billion in revenue past year, with a net loss of $111 million.

Meanwhile, Dropbox said it now has 11 million paying users, which is far less than the 500 million registered users who access its services for free. A meeting in NY is scheduled for Monday and in Boston later this week.

Dropbox's stock is expected to start trading on the Nasdaq late next week under the ticker symbol DBX.

With Dropbox preparing to go public and music streaming service Spotify working away on its own stock market listing, analysts will be watching closely for more highly-valued and privately-held companies making the big move.

Goldman Sachs & Co, JPMorgan, Deutsche Bank Securities, BofA Merrill Lynch are the lead underwriters for the public offer.

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