Online storage company Dropbox has said it’s shooting for a valuation of between $7 billion and $7.9 billion ahead of its upcoming initial public offering (IPO) next week.
The valuation target is lower than the estimated $10 billion achieved in its latest round of funding in 2014.
When the Silicon Valley startup starts trading next week it will be the first time a so-called tech unicorn goes public since the parent company of disappearing messaging app Snapchat, Snap listed shares in June 2017. A unicorn is a privately held company with a valuation of more than $1 billion.
The San Francisco based file-sharing company aims to raise as much as $648 million when its six million shares hit the trade floor.
The share price was set at $16 (£11.55) and $18 (£12.99) per share under the ticker symbol DBX.
The company also announced the sale of $100 million in stock to sales software company Salesforce, in an SEC filing today.
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The announcement comes hot on the heels of a “deep partnership” announced by Saleforce and Dropbox last week, where they unveiled plans to grow their use of each other’s software services.
Why it matters:
In what was perceived as an epic flop, Snap’s shares climbed by just a dollar in one year after a rush of investors drove the price up by 44% in the stock’s first day of trading.
Investors will be watching Dropbox closely for any sign the booming tech industry is running out of steam.
Dropbox, founded in 2007 reported $1.11 billion in revenues in 2017, up 31% from $844.8 million the year before, according to the SEC filing.
The company is still not profitable, despite its net loss shrinking to $111.7 million in 2017 from $210.2 million in 2016.
The company said they plan to boost profitability by charging more of their 500 million users in over 180 countries, according to their regulatory filing.