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Dropbox Shares Surge in Nasdaq Trading Debut

25 March, 2018, 01:46 | Author: Sara Gill
  • Dropbox IPO Price Per Share

The company will list directly on the New York Stock Exchange under the ticker symbol SPOT, removing the underwriters from setting an initial price, linking sellers and buyers and providing cash to stabilize the stock.

Dropbox Inc.'s warm welcome from the market has minted the startup's second billionaire. Still, the selloff played a role, people familiar with the deal said.

The initial public offering of Dropbox shares is expected on today.

Dropbox Inc.co-founder Drew Houston speaks in front of co-founder Arash Ferdowsi celebrate as Dropbox (DBX) is listed for the company's initial public offering (IPO) at the Nasdaq Market Site in NY, U.S., March 23, 2018.

Some of the demand for Dropbox came from a limited supply of shares available. Initially Dropbox offered it stock for between $16 and $18 prior to increasing its range earlier this week.


In the technology sector, the largest share of investor attention over the past year has been directed toward blockchain-based startups and companies related to the cryptocurrency space.

Dropbox is among a rare class of highly valued private tech companies to debut in recent years. Also, the company faces competition from other consumer cloud service providing companies like Google, Apple, and Amazon. "They are helping to unleash the world's creative energy and redefining the way work gets done", said Jeff Thomas, head of Western US Listings at Nasdaq. "One of the most rewarding things about this process of getting ready to go public was investors finally starting to understand it". This is a turn off for short-term investors who do not wish to hold on to a share for too long.

The strong Dropbox IPO price per share gives it an estimated market capitalization of $8.2 billion.

The company says more than 90% of Dropbox's revenue comes from individual users purchasing subscriptions.

Dropbox's main rival, Box, saw its shares drop as much as 5.85% after Dropbox began trading. The challenge for the company moving forward will be how it can convert its large base of unpaid users in hopes of erasing its $112-million loss on revenue of $1.11 billion previous year. The company was hacked in 2012, and more than 68 million users' emails and passwords were leaked on the internet four years later. However, with a growing family of 500 million subscribers in 180 countries, only 2% (11 million) are using paid services.

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