Dropbox shares jumped almost 40 percent on the first day of trading

Dropbox Inc. exceeded its most recent private valuation in its market debut, as shares jumped after pricing above their marketed range in the biggest technology initial public offering of the year.

Shares of Dropbox reached as high as up 50% over the course of the day with a range of $27.84 to $31.60 in the session.

The company sold 36 million shares, and a source told CNBC the offering was 25 times oversubscribed. That represents just over 40 percent growth from the initial price, and gives the company a valuation of over $12.5 billion.

Founded in 2007, Dropbox has more than 500 million registered users - most of which use its free service that offers limited storage capacity - and a presence in 180 countries. The San Francisco-based company is cash-flow positive and edging toward a net profit, while showing revenue growth of more than 30 percent past year to $1.1 billion, according to its latest pre-IPO filing.

Dropbox's performance could also add weight to the prospects of other members of the tech unicorn club (companies with funding that values them at more than $1bn). That's more than expected, especially given the original range of $16 to $18 a share last week, which was raised a couple of dollars this week.

The highly publicized and anticipated public offering made Dropbox the 7th largest IPO on a USA exchange this year, says market intelligence firm Ipreo. Finally, it has priced its IPO and went public on Thursday night.


The IPO raised $756 million for Dropbox, in addition to $100 million that Salesforce.com Inc. invested in the company through a private placement ahead of the listing. We generated net losses of $325.9 million, $210.2 million, and $111.7 million in 2015, 2016, and 2017, respectively.

Dropbox is the biggest so-called unicorn since Snap to test the public market's appetite for tech startups. According to Forbes, Graham advised Houston to get a co-founder onboard before submitting his application.

Dropbox has also had more time to adjust to life in the spotlight.

Goldman Sachs & Co LLC, J.P. Morgan, Deutsche Bank Securities, Allen & Company LLC and Bank of America Merrill Lynch are among lead underwriters to the offering.

Uber, the most valuable private tech company, is not expected to go public until next year. (NASDAQ: AAPL). It will be hard for Dropbox because many companies already have millions more in paying users including larger funds to enhance its technology.


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