File sharing and storage company Dropbox priced its IPO through an amendment made Monday to its Feb. 23 S-1 filing.
This year could bring a number of tech IPOs, with a deep bench of tech unicorns that prepared for years for public offerings, according to IPO expert Renaissance Capital.
Low volatility, a reduction in corporate taxes and good public market valuations are thought to be contributing factors for 2018’s tech IPOs.
The Offering And Share Structure
Dropbox proposes to offer 26.82 million shares of Class A shares, while selling shareholders will offer an additional 9.18 million shares.
If underwriters succeed in selling more than the 36 million Class A shares, they have an option to purchase up to an additional 5.4 million shares from the company at the IPO price less the underwriting discount.
The company has three classes of authorized common stock, namely Class A, Class B and Class C common shares.
The Class A common shares carry one vote per share versus 10 votes per share for the Class B shares, while the Class C shares have no voting right. Subsequent to the offering, the outstanding Class B shares will represent 98 percent of the total voting rights.
Dropbox qualified as an “emerging growth company” under the Jumpstart …