WASHINGTON (dpa-AFX) - Online file-storage company Dropbox Inc. has raised its initial public offering price range, largely due to strong demand for its shares.
The company now expects its IPO to be priced between $18 to $20 per share, up from previous target of $16 to $18 per share. The new target would give the company a valuation of between $7.88 billion and $8.75 billion. At the midpoint of the new range, the valuation would be $8.32 billion, above the previous estimate of $7.44 billion. Dropbox was given a $10 billion valuation by privates investors in a private funding round in 2014.
Dropbox's IPO would make it the largest U.S. tech IPO since Snap Inc. made its debut in March 2017, according to Dealogic.
The company intends to offer 36 million shares of Class A common stock, which will raise $684 million at the midpoint of the range.
Dropbox might probably price its IPO on Thursday night and the stock will begin trading Friday, according to WSJ. Dropbox will trade on the Nasdaq stock market under the ticker symbol 'DBX'.
Dropbox, which was founded in 2007 by Drew Houston and Arash Ferdowsi, allows its users to store and share documents, photos, videos and other files online. The file-storage and sharing service is actually has big competition with Apple, Google, Microsoft and Amazon all offering similar services.
Dropbox has over 500 million subscribers, however, only 2% of them are paid subscribers.
'Our future growth could be harmed if we fail to attract new users or convert registered users to paying users,' the company said as part of its risk factors in the filing.
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