Dropbox sets IPO price range, to sell stake to Salesforce

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The company had 11 million paying users and over 500 million registered users on December 31, 2017-just over 2% of its registered users pay Dropbox for the service. The offering could occur as soon as next week.

Dropbox, which was valued at $10 billion in its 2014 funding round, would be one of the biggest USA enterprise technology companies to list domestically in several years.

Data-sharing business Dropbox Inc on Monday filed for an initial public offering of 36 million shares, giving the company a value of more than US$7 billion at the higher end of the range. The valuation as calculated from the filing is around $6.7 billion.

The company has adopted a three-tier share system in which co-founders Arash Ferdowsi and Drew Houston own a majority of the Class B shares that have no financial rights but have 10 votes for every Class A share vote. The proceeds include United States dollars 100 million from a concurrent private placement of shares at the same price as the IPO to Salesforce. After the IPO only 2 percent of voting rights will be publicly traded as Class A shares, leaving existing shareholders still in control of the company.

The first, "Commerce and Marketing Cloud + Dropbox", allows users to create branded, customised Dropbox folders within Salesforce Commerce Cloud and Marketing Cloud with the new digital asset engagement solution.

At the midpoint of the range, Dropbox's IPO would be $612 million, the largest tech offering since Snap (NYSE: SNAP) went public a year ago.

Dropbox claims more than 500 million users in more than 180 countries, but the less-good news is that only about 11 million are paying for the privilege.

The company's revenue increased more 30 percent previous year to $1.1 billion from $845 million in 2016. The company plans to list on Nasdaq Global Select Market under the symbol DBX.