Dropbox aims to raise $748m through IPO

Dropbox CEO Drew Houston    
   Drew Angerer  Getty

Dropbox CEO Drew Houston Drew Angerer Getty

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 high end of the pricing range. At the midpoint of the proposed range, Dropbox would command a fully diluted market value of $7.6 billion.

Dropbox's IPO could be a part of a wave of hotly anticipated forthcoming public offerings.

The first integration will be the integration of the Commerce Cloud and Marketing Cloud with Dropbox wherein companies will be able to create customized Dropbox folders within Salesforce Commerce Cloud and Marketing Cloud with the new digital asset engagement offering. The company plans to list on Nasdaq Global Select Market under the symbol DBX.

A series of fundraisings included one in early 2015 valued Dropbox at US$10 billion.

Dropbox does have one of the complicated shares structures that have become more common of late with three classes of shares. After the roadshow is complete, they will finalize the IPO price for the company's shares, using investor feedback on the price. Despite the losses, the company is free-cash-flow positive and expects the cash it currently has to be enough to support its cash needs right now. But later that year, the company's investment bankers warned that it couldn't match that valuation in an IPO and investor Fidelity Investments slashed the estimated worth of Dropbox by nearly 20 percent.

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) previous year. The pricing of the IPO values the company at between $7 billion and $8 billion, making it the biggest tech IPO since Snap past year.

According to its IPO prospectus it has more than 500m registered users across 180 countries. It also claims to have over 11 million paying users. In the same period, the company's net losses dropped by almost $100 million.

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