Dropbox looks to raise $648 million in upcoming IPO

Dropbox looks to raise $648 million in upcoming IPO

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. At the high end of that range, Dropbox would have a market value of about $7.1 billion, based on the number of shares outstanding after the offering.

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. And Salesforce has been an investor in Dropbox since 2014, so a closer relationship between the two cloud firms is not surprising.

Salesforce Ventures LLC has entered into an agreement with the company pursuant to which it has agreed to purchase $100,000,000 of Class A common stock in a private placement at a price per share equal to the initial offering price.

In an amendment to its February 23 S-1 filing, Dropbox said it will price shares at between $16 and $18 each and intends to raise up to $648 million.

The company is now losing money.


More: If Toys R Us goes away, where will shoppers go? Each Class B share represents 10 votes. 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.

Dropbox, a web-based cloud storage provider, announced terms for its IPO on Monday. A meeting in NY is scheduled for Monday and in Boston later this week.

The company's shares are slated to begin trading late next week.

Dropbox shares will trade on the Nasdaq under the ticker symbol DBX. Goldman Sachs, J.P. Morgan, Deutsche Bank, Allen & Company, BofA Merrill Lynch, RBC Capital Markets, Jefferies and Macquarie Capital are the joint bookrunners on the deal. Its content is produced independently of USA TODAY.

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