![]() That means that Dropbox itself only pocketed $552 million. Dropbox sold 26,822,409 shares of stock by insiders, and investors sold 9,177,591. ![]() Outlets were widely reporting that the company raised $756 million in its IPO. On the other hand, if it’s positive, why not share it before the IPO?īeyond the valuation issues, some widespread misconceptions about the company and its IPO circulated on Friday. But as Dropbox noted in its filing: “As such, in this registration statement we have taken advantage of certain reduced disclosure obligations that apply to emerging growth companies regarding selected financial data and executive compensation arrangements.” It’s probably innocuous stuff, but no one will know until it’s disclosed. What surprises? Well, it’s always hard to say. The private investors in Dropbox must now grit their teeth and wait for the six-month lockup period to end before they can sell - and hope there are no unpleasant surprises between now and then. In addition, Dropbox will have to report at least two quarters of earnings as a public company. In six months, the lockup period will end and much of the rest of the stock could possibly come flooding into the market, a moment that typically causes tech stocks to plunge. Still, tech companies like to keep the percentage low so it creates scarcity and helps drive up the first-day selling price. But it’s well below the average float of 33 percent for all IPOs between 20. That’s more than some other big tech companies (Groupon: 4.7 percent LinkedIn: 8.3 percent Google: 7.2 percent). The company only sold 9 percent of its stock in the IPO. The $21 per share IPO sale valued the company below its reported private valuation of $10 billion, though the first day of trading left it with a $12 billion valuation.įor the moment, that valuation is a bit illusory. If that $28 price holds or goes up, it would offer some relief for investors who were unlucky enough to buy into late rounds for Dropbox. ![]() ![]() Join today’s leading executives at the Low-Code/No-Code Summit virtually on November 9.
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