Dropbox sets IPO price range, to sell stake to Salesforce

Monday 12 March 2018 | 15:52 CET | News

Dropbox has set a preliminary price range for its initial public offering of shares, meaning net proceeds of around USD 530 million for the cloud storage company. The proceeds include USD 100 million from a concurrent private placement of shares at the same price as the IPO to Salesforce

In a filing with the SEC, Dropbox said it will sell 26.8 million Class A shares at USD 16-18 each. Existing shareholders, including founders Drew Houston and Arash Ferdowsi, will offer another 9.2 million shares for sale, and the underwriters have an over-allotment option for 5.4 million more shares. 

The Class A shares carry one vote each, while its Class B shares carry 10 votes each. 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. On a fully diluted basis including stock options, the mid-range of the IPO price range gives the company a market capitalisation of around USD 7.4 billion. 

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