Breaking: Dropbox to Offer 36 Million Shares for IPO

When we talk about file-sharing, the first thing that comes to our mind is Dropbox. This platform is the leading file-sharing software and app we use to share our documents and files on the internet. It enables us to work remotely either in the comfort of our own home, our workspace and even if we’re on-the-go.

Suffice to say that Dropbox became a vital part of our business’ operations especially for outsourcing jobs where we need to work with a virtual remote team. It seems businessmen are not the only ones happy with the way this platform is performing, future investors are too. Why? Well, it’s because Dropbox has just filed its first initial public offering!

Dropbox Became the First Tech-giant Company to Go in Public in 2018

Founded in 2007, Dropbox became the largest cloud storage and online file-sharing company worldwide. Millions of businessmen around the world subscribed to their premium services because of its astounding features. Since then, Dropbox’s revenue and net profit continue to surge high throughout the years.

In fact, it projected a significant improvement for the last three years according to its latest revenue report which also indicated that the company gained around $210.2 million in 2015, $325.9 million in 2016, and an astounding $1.1 billion in 2017.

Dropbox CEO and co-founder Drew Houston

However, it seems that Dropbox didn’t start the year 2018 with a bang as it projected a downhill revenue report as of February. The good news about this revenue loss though is that Dropbox sees it as a room for improvement. They see the declining revenue report as an opportunity to upgrade their services and revise their business model. This prompted the company to file an S-1 form at the SEC two weeks ago on March 1, 2018. And now, for the first time, Dropbox is opening its shares to the public.

This decision means that businessmen and investors can now purchase Dropbox stocks! The company will enlist under the symbol DBX in Nasdaq and will sell their shares based on a three-class structure. The Class C shareholders can purchase stocks and receive their profit based on the index performance. However, Dropbox won’t give any voting nor control powers of the company to Class C shareholders.

More tech-giants like Spotify are expected to follow suit after Dropbox’ IPO move

While the Class A shareholders will only receive one vote. Last but not the least, the Class B shareholders can have voting powers and control up to 10. Dropbox is set to compete for its stock with two giant business-software companies: Atlassian and Box. These companies currently hold an astounding $12.4 billion and $3.32 billion markets respectively. And for those investors who are eager to know the company’s pricing, wait no more because the company recently unveiled new developments about the said IPO!

Dropbox Seeks to Raise its Company Valuation Up to $7.5 Billion.

Last Monday, the giant file-sharing company announced that it plans to release around 36 million shares in public in the second half of 2018. The company estimated the price of each share to cost around $16-$18. If the SEC approves the filing, the company can raise their profit up to $648 million. And it seems that Dropbox is getting closer to reaching that goal because other tech-giant companies already pledged to buy their stocks.  

The newest Dropbox offices

If all things go well, Dropbox estimates that the value of their company can go beyond $7.5 billion! The company hopes to realize the projected figure to recover their revenue loss from last year. The filed SEC form stated that the company already lost around $111 million revenue at the start of 2018 compared to their $1.1 billion last year.

Can Dropbox Recover Their Revenue Loss For This Year?

What do you think about Dropbox’s latest move? Do you believe that the company can still recover its revenue loss this year? As an investor and a businessman, are you willing to buy Dropbox’s shares for $18?

Whether you have the plan to invest now or later, we’d like to remind everyone to test the waters first. See if Dropbox can indeed deliver to their projected figures. If the company is doing well, that’s the time you can pour in more money to invest in Dropbox.