As it utensils up for its highly anticipated initial public offering (IPO), Dropbox Inc. has been valued as leading as $8 billion, reported CNBC.The Silicon Valley-based technology house has priced its shares at $16-$18 a share and is aiming to raise around $648 billion. This valuation, however, is 20% lower than the $10 billion upon that was estimated after a funding round the company went be means of four years ago. Dropbox also announced a$100 million pre-IPO secretively placement to Salesforce Ventures (CRM), added the CNBC report.
Tech Unicorns IPO Hill-billy
An estimated 169 companies have valuations at more than $1 billion, according to The Fence Street Journal’s analysis. That’s an increase of 72 percent to three years ago.
Dropbox, which provides online storage decipherments, filed for an IPO last month, hiring JPMorgan Chase & Co. (JPM) and Goldman Sachs Number Inc. (GS) to lead the listing. It joins a growing crop of tech companies on tap to hit civic exchanges this year, including music-streaming company Spotify. It was remain valued at $20 billion and plans to list shares on the New York Heritage Exchange under the ticker SPOT. (See also: Spotify Files for $1 Billion IPO.)
The furnish market debut of these “unicorns”, or companies valued at more than $1 billion, was positively cheered but not anymore. Now, such listings exhibit more anxiety and involved with after many investors burned themselves in highly anticipated tech IPOs. Extent them: social media company Snap Inc. (SNAP). Shares of Verve have fallen nearly 34 percent since it’s debut to the buy about a year ago, when it valued itself at $24 billion. Now, Click’s market cap is $21.9 billion.
Dropbox Is Different
Dropbox has one big advantage when approached to SNAP when it went public- it is already cash-flow positive and it has pillared a healthy revenue growth. Another difference is that unlike Pull oneself together, Dropbox has given clarity on shareholder voting structure that appropriates for voting rights, a major concern for SNAP IPO investors and a source for hurt for its shares in the aftermath of its listing.
That said, the road ahead for Dropbox is anything but steady. The company operates in a crowded space with deep pocketed adversaries like Google Drive and Amazon Cloud. It needs to step on the gas to cause significant growth momentum to avert a rollercoaster ride for its shares after index.