Dropbox aims to raise as much as $648 million (U.S.) in its USA initial public offering.
Dropbox Inc. aims to raise as much as $648 million in its US initial public offering.
In a filing with the Securities and Exchange Commission, Dropbox said it's marketing 36 million Class A shares of common stock. That's well behind the $10 billion that it was valued at during its last round of private financing in 2014. The valuation as calculated from the filing is around $6.7 billion.
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.
The San Francisco-based company, which says it has over 500 million users, is expected to go public this week. The reverse split allows the company to set a higher IPO price without diluting insiders' valuation.
Meanwhile, Dropbox said it now has 11 million paying users, which is far less than the 500 million registered users who access its services for free.
Dropbox's S-1 form Dropbox that it filed with the Securities and Exchange Commission showed that it lost $111 million (£80.1 million) on revenue of $1.1 billion (£793 million) past year. Investors are sure to have questions for the file-sharing technology leader as it embarks on its marketing roadshow. The company's revenue was $603.8 million, $844.8 million, and $1,106.8 million in 2015, 2016, and 2017, respectively, representing an annual growth rate of 40% and 31%, respectively. In the same period, the company's net losses shrank to $112 million from $210 million.
Goldman Sachs Group, JPMorgan Chase & Co., Deutsche Bank AG and Allen & Co. are leading the offering. Instead, the company's shareholders will most likely see the value of their shares fall when Dropbox, under ticker symbol DBX, begins trading on the Nasdaq.