Cloud-based file storage company Dropbox has debuted on the Nasdaq stock exchange. It is the largest tech stock IPO in more than a year and early pricing bodes well for other IPOs from tech unicorns and startups.
Storing digital data from music and films to documents, presentation and images has become big business with the lifestyle shift to accessing content and services online.
One of the major players active in this field is Dropbox , which listed on the Nasdaq stock exchange on Friday in the largest tech stock IPO in more than a year.
The company said its debut was priced at $21 per share, meaning it would have a market cap of about $9.18 billion (€7.45 billion).
Dropbox shares are set to start trading Friday under the symbol DBX. The strong pricing bodes well for other highly anticipated IPOs from tech unicorns, or startups valued at more than $1 billion.
Dropbox has 500 million users and competes with Google, Microsoft and Amazon.
The biggest problem for the company may be that it doesn't really have any unique competitive advantages or features that would set it apart from its rivals.
"Nevertheless, pricing above the revised range indicates there is more demand than supply for growth technology IPOs, especially those generating substantial positive free cash flow," said Class V Group analyst Leslie Pfrang.
Streaming music leader Spotify Technology SA is scheduled to do a direct listing of shares on the New York Stock Exchange on April 3.
hg/sri (Reuters, AFP)