We'll see how it has performed on a number of metrics, and while the company has perhaps not delivered as much as it potentially could have delivered, it is a more profitable company compared to the Dropbox at IPO. The reason for this is simple, it went public at a very high valuation, and it has taken four years for its fundamentals to catch on with the actual price. It currently trades for ~$20.65 four years later, despite massive improvements to its financials. 'They will be watching this closely as they look towards their own debut.'Ī direct listing lets investors and employees sell shares without the company raising new capital or hiring a Wall Street bank or broker to underwrite the offering.Funky-data/iStock Unreleased via Getty Imagesĭropbox ( NASDAQ: DBX) IPO'ed in March 2018, going public at $21 per share and opening at $29.

Music streaming service Spotify, valued at roughly $19 billion in the private markets, has also filed for a direct listing and will debut on the NYSE on April 3.ĭropbox's increase in IPO price range bodes well for Spotify, said Michael Carvin, Chief Executive of personal finance technology firm SmartAsset. The stock closed a dollar below its IPO price of $17 on Tuesday.ĭropbox's IPO comes on the heels of a strong market debut of cyber security firm Zscaler Inc (NasdaqGS: ZS - News), which had also raised the size and price of its offering.

The last big unicorn to go public was Snapchat-owner Snap Inc (:SNAP.N), whose shares have cratered since the company's high-profile IPO last year. 'The initial file price range was quite conservative relative to the valuations placed on comparable firms, such as Box,' said Jay Ritter, an IPO expert and professor at the University of Florida.ĭespite the bump in price, Dropbox's market cap is still below the $10 billion valuation that it commanded in a 2014 private funding round.ĭropbox's IPO is being closely watched by the investment world to gauge market appetite for tech unicorns - young companies valued at more than $1 billion. The new price range suggests the company, co-founded by Andrew Houston and Arash Ferdowsi in 2007, could have a market capitalization of up to $8.7 billion based on a fully diluted share count and the IPO could raise up to $720 million. The company now expects the offering to be priced between $18 and $20 per share, up from its previous range of $16 to $18. (Reuters) - Cloud storage firm Dropbox Inc raised the price range for its initial public offering by $2 on Wednesday as investors bid strongly for the first big tech IPO this year ahead of final pricing expected on Thursday.

Dropbox stock price since ipo