Dropbox, a US-based file storage platform backed by enterprise software producer Salesforce, closed its initial public offering at $869m last week after its underwriters fully took up the IPO’s over-allotment option.
The company issued an initial 26.8 million shares priced at $21 each last month, adding to almost 9.2 million shares sold by existing investors, while Salesforce paid $100m for nearly 4.8 million shares through a private placement. Its stock is currently trading at just over $32.
Goldman Sachs, JP Morgan Securities, Deutsche Bank Securities, Allen & Company, BofA Merrill Lynch, RBC Capital Markets, Jefferies, Macquarie Capital, Canaccord Genuity, JMP Securities, KeyBanc Capital Markets and Piper Jaffray bought a further 5.4 million shares at the IPO price.
Dropbox has built a cloud-based data storage and collaboration platform with more than 500 million registered users. It recorded a $112m loss in 2017 from more than $1.1bn in revenue, and had raised about $600m in funding pre-IPO.
Venture capital firm Sequoia Capital remains Dropbox’s largest shareholder, owning 87.2 million shares equating to a 21.1% stake now the underwriters have taken the additional shares. Its other notable investors are Accel (4.5%) and T. Rowe Price (3.2%).