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The company now expects the offering to be priced between $18
and $20 per share, up from its previous range of $16 to $18.
http://bit.ly/2ubO2LU
The new price range suggests the San Francisco company,
co-founded in 2007 by Andrew Houston and Arash Ferdowsi, will
hit the public market valued at up to $7.85 billion and the IPO
will raise up to $720 million.
"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.
Despite the bump in price, Dropbox's valuation is still well
below the $10 billion that it commanded in a 2014 private
funding round.
Sources had told Reuters on Monday that the offering was
oversubscribed.
Dropbox's IPO is being closely watched by the investment world
for signs of the strength of enthusiasm for tech unicorns -
young companies valued at more than $1 billion.
The company has 500 million users and competes with Alphabet
Inc's Google, Microsoft Corp, Amazon.com Inc. Box Inc is its
main rival.
The order book for the IPO closes at midday on Wednesday and the
pricing is expected on Thursday.
The stock will make its market debut on the Nasdaq on Friday.
(Reporting by Sweta Singh and Nikhil Subba in Bengaluru; Editing
by Anil D'Silva)
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