We're more used to technology companies dropping their flotation prices ahead of a stock exchange listing but Dropbox Inc (NASDAQ:DBX) has defied the trend.
The cloud-storage outfit has priced its initial public offer at US$21, which was above the expected range, the Wall Street Journal reported.
READ: Dropbox prices IPO above expectations at $21
Earlier this week in an official filing, Dropbox had indicated its flotation price would be in the US$18 to US$20 range, which was an increase on the US$16 to US$18 range it had previously indicated, so clearly demand for the loss-making enterprise's shares is strong; according to CNBC, the share offering was 25-times oversubscribed.
The flotation price values the company at around US$8.24bn. Technology web site TechCrunch contrasted the valuation with the company's last funding round from private equity, which placed a value of US$9.7bn on the company.
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Demand for the shares comes despite a tough time for the tech sector in the US of late, with social media giant Facebook Inc (NASDAQ:FB) embroiled in a high-profile data privacy scandal that has seen its shares plunge this week from around US$185 to US$165.