After a challenging week for tech stocks, cloud storage company Dropbox Inc. (DBX, Financial) debuted on the Nasdaq Friday morning, pricing its initial public offering at $21 a share.
The San Francisco-based company’s highly anticipated offering of 36 million shares was priced above expectations. In filings with the Securities and Exchange Commission, it had forecasted $16 to $18 per share, which it increased to $18 to $20 earlier this week.
According to CNBC, the pricing gives the company an initial market capitalization of over $8.2 billion. This is lower than the $10 billion valuation it received in a private funding round in 2014, however.
In addition, sources told Reuters on Monday that the offering was oversubscribed, meaning there is more interest in the stock than there are shares available.
CNBC also reported that the $756 million offering is the largest tech IPO since Snap Inc. (SNAP, Financial) last year.
Dropbox first announced its intentions to go public in February, reporting it had made more than $1 billion in revenue in 2017 and had 500 million registered users, of which 11 million were paying customers.
The company also posted a net loss of $111.7 million for the year, which was an improvement from a $210.2 million loss in 2016.
Filings show Dropbox’s co-founder and CEO, Drew Houston, has a 24.4% stake, making him the company’s largest shareholder. Sequioa Capital is the second-largest shareholder with approximately 23% of outstanding shares.
Shares of one of Dropbox’s main competitors, Box Inc. (BOX, Financial), were initially higher on Friday morning before reversing lower. GuruFocus estimates the stock has gained 5% year to date.
Dropbox also faces stiff competition from Apple (AAPL, Financial), Amazon (AMZN, Financial) and Alphabet’s (GOOG, Financial) Google.
The next big tech IPO is music streaming service Spotify Inc. on April 3.
Disclosure: No positions.
