Dropbox shares increased by almost 50% in its first trading hours.
Cloud storage company Dropbox filed for the initial public offering with the Securities and Exchange Commission in late February to trade on the Nasdaq. The company priced its IPO at $21 a share, above the range of $16 to $18 it expected earlier in the month. The price of $21 a share gave Dropbox a valuation of $9.2 billion.
In early trading the price rose above $30, up 38% from the company’s initial pricing. By the end of the day, the price had settled at $28.48, sending market capitalization to $12.4 billion.
According to analysts, there have been few major tech IPOs, which is why investors showed strong interest in the company.
Dropbox raised $560 million in the IPO, with $193 million going to its confounders, early investors and former executives.
