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Dropbox going to IPO $2.5 bn below value estimates: Shares are cheap

Business Insider (BI) said Dropbox  plans to list 36 million shares in its upcoming IPO.

The file sharing company announced in a filing on Monday that it estimates the price of each of those shares between $16 and $18.

“That means the company is seeking to raise up to $648 million from its public listing,” said BI.

“The midpoint of those pricing estimates mean the company would be valued at $7.5 billion.”

In an earlier report, AMEinfo reported that Dropbox filed for an IPO with the SEC to be listed on NASDAQ over the coming weeks.

“The move by the popular cloud storage company Dropbox makes sense, as upbeat equity market conditions should allow it to raise the $500 million it seeks at a favorable valuation,” AMEinfo reported Forbes as saying.

“Based on information disclosed by the company in its SEC filing, we estimate that the company is worth around $10 billion,” Forbes added.

That’s a $2.5bn drop in value estimation.

Read: 9 eye-popping things you might not know about Dropbox CEO Drew Houston

Buyer on board

A document filed by Dropbox said that Salesforce’s ventures arm, Salesforce Ventures, had agreed to buy $100 million worth of Dropbox stock.

The company filed for its IPO in February, and said that it plans to trade on the Nasdaq under the ticker symbol DBX.

“Dropbox’s S-1 form Dropbox that it filed with the Securities and Exchange Commission showed that it lost $111 million on revenue of $1.1 billion  last year,” said BI.

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