Next to drop

23 March 2018 By Robert Cyran Follow @rob_cyran

The online-storage firm’s shares rocketed about 50 pct in its first few hours as a public company. The rousing welcome for a $12 bln tech firm aimed at consumers is heartening for Spotify. And it could accelerate IPO plans for firms like Airbnb and Lyft.

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Dropbox shares rose sharply in its first hours of trading as a public company on March 23. The cloud-based storage company’s stock was trading at $30.70 at midday, after pricing at $21 the previous day. The open-market price gives Dropbox a market capitalization of about $12 billion based on shares outstanding and assuming underwriters exercise a greenshoe option. The company has 500 million users and had revenue of $1.1 billion in 2017 – an increase of 32 percent from the previous year.

Dropbox founder and Chief Executive Andrew Houston will own 24 percent of the firm after selling 2.3 million shares in the offering.

On March 21, Dropbox raised the expected range of the pricing by $2 to $18 to $20 per share. A funding round in early 2015 had valued the firm at $10 billion.

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