“But at the same time, the environment is also competitive”. It has an attractive story to justify its need for financing and the market dynamics are good,” said Josh Lerner, professor of investment banking at Harvard Business School. “Dropbox is going public at the right time. The music streaming service has filed for a direct listing and will start trading on the New York Stock Exchange on April 3. The pop in Dropbox’s price may bode well for Spotify, valued at roughly $19bn in the private market. “In the case of Dropbox, investors get a chance to get exposure to a next-generation tech company, which is a proven business model,” said Tom Taulli, analyst. The last so-called tech unicorn to hit the market was Snap Inc last March, and the Snapchat owner is now trading roughly 4 percent below its $17 IPO price. The S&P tech index was down 2.73 per cent.ĭropbox’s much-awaited debut ended a long dry spell in the US IPO market for big tech names. The S&P 500 slid 1.8 percent while Nasdaq dropped 2.4 per cent, adding to losses of more than 2 per cent each on Thursday. The solid first-day pop came despite weakness in the wider U.S. Its IPO priced at $21 per share late on Thursday, $1 above the projected range of $18 to $20, and was several times oversubscribed. At the stock’s opening price, Dropbox had a market valuation of $12.67 billion, well above the $10bn valuation it had in its last private funding round. The stock opened at $29 on the Nasdaq and soared as much as 50 per cent to a high of $31.60 in early trading. Dropbox Inc’s shares closed at $28.42, up more than 35 per cent in their first day of trading on Friday, as investors rushed to buy into the biggest technology initial public offering (IPO) in more than a year even as the wider sector languished.
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