Dropbox shares soar 40 percent in USA market debut

Delia Walker
March 26, 2018

Here's Statista's chart of how the Dropbox IPO compares to other high-profile tech IPOs since 2011. With the first day of trading underway, the Dropbox IPO is off to a healthy start, as stock prices climb over 40 percent.

Dropbox's shares soared by as much as 50% in their first day of trading on Friday as investors rushed to buy into the biggest technology initial public offering in more than a year even as the wider tech sector languished.

At its highest trading price, the cloud-storage company was worth almost $12 billion, above its most recent private valuation.

The regulatory filing Dropbox submitted for its IPO showed that the company had more than 11 million paying users.

At the time of the Dropbox IPO, the stock sold for $21 per share.

The offering gave the company an initial market value of more than $8 billion.

Dropbox is the biggest so-called unicorn since Snap to test the public market's appetite for tech startups.

The IPO raised about $756 million in the largest tech IPO since Snap Inc raised $3.9 billion in its debut past year. InvestorPlace.com analyst Tom Taulli suggests that "in the case of Dropbox, investors get a chance to get exposure to a next-generation tech company, which is a proven business model". Its net loss, however, was almost halved, to $111.7 million.

Dropbox has not yet tallied an annual profit, but it did cut losses to $112 million in 2017 from $326 million the year before, while notching 30 percent-plus sales growth, according to the New York Times. For example, Andrew Houston, the co-founder and CEO, will have 24% of the company, while the the venture-capital firm Sequoia Capital will own a 25% stake. As trading got going today, under the sign DBX, the supply opened up at $29, as well as while it's been backwards and forwards in the hrs because, it's still in the mid-$29 variety.

This post originally appeared on Business Insider.

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