San Francisco-based data-storage company Dropbox Inc. opened up around 40 percent Friday relative to its initial public offering price, with investors showing enthusiasm for the United States' biggest tech IPO in more than a year.
Its IPO priced at $21 per share late on Thursday, $1 above the projected range of $18 to $20, and was several times oversubscribed.
Dropbox's increase in IPO price range bodes well for Spotify, said Michael Carvin, Chief Executive of personal finance technology firm SmartAsset.
Dropbox trading under ticker symbol DBX on the Nasdaq closed the day at about $28.50 a share, a significant mark for the company's later-round investors who bought equity at around that price.
In the filling to the US Securities and Exchange Commission, Dropbox reports 1.11 billion United States dollars of revenue in 2017, representing an increase of 31% yoy.
Founded in 2007 by two Massachusetts Institute of Technology computer science students, Drew Houston and Arash Ferdowsi, Dropbox sells software subscriptions that let users collaborate and share files online. Dropbox is offering 26,822,409 shares of Class A common stock and selling stockholders are offering 9,177,591 shares of Class A common stock.
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Uber, the most valuable private tech company, is not expected to go public until next year.
Venture capital firm Sequoia Capital will retain a stake of about 25 percent.
The company boasts 500 million users but among that count, only 11 million are paying for the premium service.
The company will also use this time in the limelight to inform users of its different functions. Today, it offers a platform for businesses that enables collaborative editing of documents and other files.
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now. and Dropbox, Inc. wasn't one of them!
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