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File-sharing company Dropbox discloses IPO details, Salesforce investment

San Francisco-based file-sharing and cloud-storage company Dropbox Inc. said it expects net proceeds of up to about $617.4 million from its planned initial public offering, and enterprise cloud services company Salesforce.com Inc. will be one of the offering's major investors.

The Dropbox IPO is one of two major tech-related offerings announced in 2018, following a $1 billion IPO filing by streaming music company Spotify AB's parent Spotify Technology SA in late February. The Dropbox and Spotify offerings also would position 2018 to potentially outpace the prior year for media tech IPOs. Last year saw only two major filings in the media tech space, from Roku Inc., a TV streaming platform company, and Snap Inc., the parent of social media platform Snapchat.

Also this year, cloud security firm Zscaler Inc. filed for a smaller IPO of up to $100 million in mid-February.

Dropbox said up to 41,400,000 shares of its class A common stock will be sold for between $16 and $18 per share in the upcoming offering. The company is planning to sell 26,822,409 shares of class A common stock, and offer the IPO's underwriters an option of purchasing up to an additional 5,400,000 shares. At $17 per share, the midpoint of estimated share price for the IPO, Dropbox estimates it would receive about about $617.4 million in net proceeds should underwriters fully exercise the option to buy additional shares, or about $529.7 million should that option not be exercised.

Existing stockholders will offer 9,177,591 shares in the IPO, though the company will not receive any proceeds from the sale of these shares.

Founded in 2007, Dropbox said it has over 500 million customers in more than 180 countries. It reported revenue of $1.11 billion and a net loss of $111.7 million for 2017.

Dropbox intends to use a portion of its net proceeds to repay $172.8 million that is expected to be outstanding immediately before the completion of this offering under the revolving credit facility. Proceeds also will be used for general corporate purposes, including working capital, operating expenses and capital expenditures.

Salesforce Ventures, the investment arm of Salesforce.com, has agreed to buy $100 million of Dropbox's class A common shares in a private placement immediately subsequent to the IPO.

Dropbox has applied to list its class A common stock on the Nasdaq Global Select Market under the symbol DBX.

Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Allen & Co. LLC, Merrill Lynch Pierce Fenner & Smith Inc., RBC Capital Markets LLC, Jefferies LLC, Macquarie Capital (USA) Inc., Canaccord Genuity Inc., JMP Securities LLC, KeyBanc Capital Markets Inc. and Piper Jaffray & Co. are serving as underwriters for the offering.