Dropbox prices IPO at $21 per share

  • Dropbox priced its IPO above expectations on Thursday night.
  • The new price values the company at over $8.2 billion.
  • The company $756 million in the biggest tech IPO since Snap's last year.

Dropbox priced its IPO above expectations at $21 per share on Thursday night, setting the stage for the software company's stock to hit the public market on Friday.

The company sold 36 million shares, and a source told CNBC that the offering was 25 times oversubscribed. Dropbox, which raised $756 million in the largest tech IPO since Snap last year, will trade on the Nasdaq under the ticker "DBX."

Click here for our coverage of Dropbox's first trade on Friday, and CNBC's interview with CEO Drew Houston.

The pricing gives the company an initial market capitalization of over $8.2 billion, lower than the $10 billion valuation it received in a 2014 private funding round.

Dropbox's expected range was $18 per share to $20 per share, which was was up $2 a share from the company's earlier estimate of $16 per share to $18 per share.

The cloud storage company's IPO has been highly anticipated despite an especially challenging week for tech stocks after Facebook's recent data scandal. Its success could be a sign of the strength of tech "unicorns," young companies valued at more than $1 billion.

Dropbox reported more than $1 billion in 2017 revenue and 500 million registered users when its plans to go public were unsealed in February.

The company posted a net loss of $111.7 million in 2017, a narrower loss than $210.2 million a year earlier.

Dropbox competes with Box as its main cloud storage rival, as well as consumer cloud offerings from Apple, Amazon and Google. The company also lists Atlassian as a competitor in the area of worker collaboration.

Dropbox was also a CNBC Disruptor 50 company five times.