Dropbox aims to raise $648m in forthcoming IPO

12 Mar 2018

Dropbox on iPad. Image: Billion Photos/Shutterstock

Dropbox is on its way to going public and it has an ambitious goal in mind.

Cloud storage giant Dropbox has revealed more details about its upcoming venture on the public stock market, according to a report in The New York Times.

The company, which has more than 500m registered users and stores more than 500bn pieces of content, is on the way to a public listing.

The firm’s prospectus has been updated and it said today (12 March) that it hoped to raise as much as $648m in its debut on the market. It plans to sell a whopping 36m shares, priced at between $16 and $18 per unit. This would mean Dropbox would be valued at approximately $7.5bn at the midpoint of that range.

Help from Salesforce

Salesforce is also going to be a part of the initial offering. Its venture arm, Salesforce Ventures, invests in enterprise cloud companies and it will be purchasing $100m of Dropbox stock.

The two companies also announced a significant integration pact that would link both of their platforms closer together for joint customers, with primary integrations to centre around creating two-way access between Salesforce products – Commerce Cloud, Marketing Cloud, Quip – and Dropbox itself.

Executives will soon begin to present at various meetings across the US, with a view to convincing people that its stock is a worthwhile investment.

With Dropbox preparing to go public and music streaming service Spotify working away on its own stock market listing, analysts will be watching closely for more highly valued and privately held companies making the big move.

Other companies keeping an eye on Dropbox

According to Nasdaq, there has been a major rise in what it calls ‘decacorn’ companies – firms valued at more than $10bn – moving up the ranks.

There are 19 pre-IPO decacorns at present and many are watching with bated breath to see how Dropbox will perform, particularly in the aftermath of Snap’s IPO in March 2017 and the volatile results that followed.

In the latest prospectus, Dropbox sounded confident. “We believe the need for our platform will continue to grow as teams become more fluid and global, and content is increasingly fragmented across incompatible tools and devices. Dropbox breaks down silos by centralising the flow of information between the products and services our users prefer, even if they’re not our own.”

Dropbox on iPad. Image: Billion Photos/Shutterstock

Ellen Tannam was a journalist with Silicon Republic, covering all manner of business and tech subjects