Dropbox Expects To Price IPO In $16-$18/shr Range

(RTTNews) - Dropbox Inc. is offering to sell about 26.82 million shares of Class A common stock in initial public offering. The selling stockholders are offering to sell an additional 9.18 million shares of Class A common stock. It is currently estimated that the initial public offering price per share will be between $16.00 and $18.00. The company has applied to list the Class A common stock on the Nasdaq Global Select Market under the symbol "DBX".

Dropbox estimates that the net proceeds to the company from the sale of shares of Class A common stock in this offering and the concurrent private placement will be approximately $529.7 million or approximately $617.4 million if the underwriters' option to purchase additional shares of Class A common stock from the company and the selling stockholders is exercised in full, based upon the assumed initial public offering price of $17.00 per share, which is the midpoint of the estimated offering price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by the company.

The company will not receive any of the proceeds from the sale of the shares being sold by the selling stockholders.

Salesforce Ventures LLC has entered into an agreement with the company pursuant to which it has agreed to purchase $100,000,000 of Class A common stock in a private placement at a price per share equal to the initial offering price.

The cloud storage company Dropbox was founded in 2007. The company's revenue was $603.8 million, $844.8 million, and $1,106.8 million in 2015, 2016, and 2017, respectively, representing an annual growth rate of 40% and 31%, respectively. It generated net losses of $325.9 million, $210.2 million, and $111.7 million in 2015, 2016, and 2017, respectively.