It’s D-Day. Dropbox Day, that is — the day that one of the biggest names in the technology startup world ceases to be a private company and embraces Wall Street.
The company’s shares started trading this morning on the Nasdaq at $29, representing a 38 percent jump on the $21 its shares were priced at yesterday. In the minutes after trading kicked off, shares hit the $31 mark, translating into a 48 percent hike on its IPO price.
The San Francisco-based cloud storage company first set its IPO price range at between $16 and $18 earlier this month, but later raised this by $2 due to strong demand before arriving at its final $21 IPO price on Thursday. This gave it a $9.2 billion valuation — up substantially on the $7 billion valuation it was pegged at just days earlier, but still well below its $10 billion private valuation from 2014.
Now, we have a much clearer picture of the public demand for what was one of the most anticipated tech IPOs since Snap last year.
Dropbox is in fact the second big tech IPO of 2018. San Jose-based information security company Zscaler went public on the Nasdaq last week with an IPO price of $16, and today its value is sitting at nearly double that.
It’s still early days, but the appetite for tech IPOs looks good so far in 2018. And that is good news for Spotify, which is gearing up for its direct listing 10 days from now.
11 years in the making
Dropbox, which is trading under the DBX ticker symbol, has taken nearly 11 years and almost $2 billion in funding to reach this stage. Founders Arash Ferdowsi and Drew Houston penned a public letter (via Dropbox, natch)…