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Dropbox sees IPO price between $16 and $18 per share

12 March 2018

Silicon Valley darling Dropbox is aiming to go public at a valuation well below the $10 billion it clocked in its last private funding round, despite posting healthy revenue growth and turning cash-flow positive in the intervening four years. Adding in the value of restricted stock units lifts the company's valuation to around $8 billion.

The company is one of a class of well-funded, closely-watched technology companies that have achieved a private valuation of more than $1 billion.

That's after the storage company disclosed Monday that it would sell new shares at between $16 and $18 a share, meaning Dropbox would be valued at around $7 billion at the high end of the range.

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Dropbox will seek to raise $648 million when its shares hit the public market later this month. The proceeds include Dollars 100 million from a concurrent private placement of shares at the same price as the IPO to Salesforce. The company is issuing 27 million shares, while current investors, including co-founders Drew Houston and Arash Ferdowsi, are selling nine million shares.

Dropbox company has touted its business as a path to unleashing creative energy and inspired work.

Dropbox, which has 11 million paying users across 180 countries, said that about half of its 2017 revenue came from customers outside the United States.

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In the latest prospectus, the company sounded confident: "We believe the need for our platform will continue to grow as teams become more fluid and global, and content is increasingly fragmented across incompatible tools and devices". It doesn't make any money; it lost $111.7 million on $1.11 billion in revenue previous year, and revenue growth has been declining. In the same period, the company's net losses shrank to $112 million from $210 million.

The company filed for its initial public offering in February, saying it planned to trade on the Nasdaq under the ticker symbol DBX.

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Dropbox sees IPO price between $16 and $18 per share