Dropbox float to value business at around $7bn

Tech company Dropbox is set to be valued at $7bn (£5bn) at its initial public offering (IPO) next week, according to regulatory documents filed today.

According to documents filed with the US Securities and Exchange Commission, Dropbox will sell shares at between $16 and $18, valuing the company at around $7bn.

The valuation represents a fall on its last private funding round in 2014 which valued the company at $10bn.

Read more: Data storage firm Dropbox gets $10bn valuation in funding round

The filings also reveal that US cloud computing company Salesforce has agreed to acquire $100m of Dropbox stock in a private placement.

Dropbox offers private and business users cloud computing services to enable them to share content easily.

According to its IPO prospectus it has more than 500m registered users across 180 countries.

in 2017 it had revenue of $1.106bn, representing annual growth of 31 per cent, but posted a loss of $111.7m.

Read more: Spotify has finally filed for an IPO, and it’s aiming to raise $1bn

Fellow tech company Spotify is also currently lining up a New York IPO which is aiming to raise up to $1bn.

The Swedish music streaming company said that its shares had been trading at up to $132.50 apiece on private markets recently which would value it at more than $23bn.