San Francisco-based Dropbox, which started as a free service to share and store photos, music and other large files, competes with much larger technology firms such as Alphabet Inc's (GOOGL.O) Google, Microsoft Corp (MSFT.O) and Amazon.com Inc (AMZN.O) as well as cloud-storage rival Box Inc (BOX.N).
The file sharing company announced in a filing on Monday that it estimates the price of each of those shares between $16 and $18. The IPO's target price range is already poised to put Dropbox well below the $10 billion valuation that it received after its last funding round.
While the Class A shares have little voting power, they indicate the company values itself at about $8 billion -a bit less than the $10 billion level it touted in private funding efforts almost four years ago.
Dropbox Inc. today revealed plans to raise up to $648 million in its forthcoming initial public offering, which would give it a valuation as high as $8 million when taking into account restricted stock.
The filings also reveal that U.S. cloud computing company Salesforce has agreed to acquire $100m of Dropbox stock in a private placement. It plans to list on the Nasdaq under the symbol DBX. After the roadshow is complete, they will finalize the IPO price for the company's shares, using investor feedback on the price. The company also announced a $100-million private placement by Salesforce Ventures. Dropbox says it has more than 500 million registered users, with 11 million of those paying for added features.
Dropbox had revenue of $603.8 million in 2016, and that grew to $844.8 million in 2016 and $1.1068 billion in 2017. In the same period, the company's net losses shrank to US$112 million from US$210 million. The company is issuing 27 million shares, while current investors, including co-founders Drew Houston and Arash Ferdowsi, are selling nine million shares. Each share of Class B common stock is entitled to ten votes per share and is convertible at any time into one share of Class A common stock.
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