Topic: How To Invest

Spinoffs, Takeovers & Special Situations Hotline – Thursday, March 29, 2018

Article Excerpt

DROPBOX INC., $31.25, symbol DBX on Nasdaq, is a U.S. company that provides cloud storage for both individuals and firms. The company launched its much-anticipated initial public offering, or IPO, on March 21. It raised a total of $756 million from an offering of 36 million shares at $21 a share. That’s well above its proposed range of $18 to $20 per share. The company plans to use the proceeds to pay down $213.4 million in debt, make acquisitions and expand its existing operations. Dropbox has more than 500 million users in 180 countries. Most of them use its free, basic service with limited storage. It has roughly 11 million paying users. The company has seen its share price jump to $31.25 in just over a week of trading. The IPO was reportedly 25 times oversubscribed. Meanwhile, one of its competitors, Box Inc., symbol BOX on New York, dropped more than 5% on the success of the Dropbox IPO. However, Box Inc., which itself…