The cloud company, Dropbox Inc has gone public, and its initial public offering was oversubscribed, reported Reuters, this implies a healthy demand got the biggest tech IPO since Snap Inc. The response comes as a surprise since the stocks opened on a sore note this week.
The investor's interest looks quite encouraging for Dropbox, given that there are only three days to go before the final pricing. We will have to wait and see what Dropbox decides to do if it will lift the initial rage above $16-$18, like it said last week. The offering can be expected the price on Thursday, and the stocks will be up for trading on Friday.
Dropbox’s IPO timing does not come at a good time, this week has been quite the challenging one, with the U.S Federal Reserve plans to raise the interest rates on Wednesday and with the fall in tech shares on Monday. Nasdaq is down more than two percent with Facebook’s privacy issues.
Existing shareholders ate selling 36 million shares, and the offering can go up by 5.4 million if the underwriters cerise their choice to buy more stock. We are looking at the high end of the pricing to raise nearly $650 million, largest tech IPO since last year's Snap Inc's IPO.
The present prices suggest that Dropbox, which was founded by Andrew Houston and Arash Ferdowsi back in 2017 will be valued at $7 billion. While Houston is the most significant shareholder with 25% of the Dropbox after selling 2.3 in the IPO, Sequoia Capital remains to be the largest shareholders in outside investors with a 25 percent stake. Dropbox has about 500 million users and faces constant competition from other cloud storage giants, such as Google, Microsoft and Amazon, and Box. We will have to wait a few more days to see how well Dropbox does on the Wall Street.