File hosting service storage Dropbox saw its shares soar more than 40% in its market debut on Friday, with investors rushing to get their hands on a piece of the biggest tech IPO in over twelve months.
Dropbox is trading on the Nasdaq with the ticker DBX.
The cloud-storage company had priced its IPO at $21 a share on Thursday, above its previously expected range.
Watch Dropbox trade in real time here.
The offering gave the company an initial market value of more than $8 billion. Over the years we've seen plenty of tech firms take their companies public (with varying degrees of success), and it was just about this time last year when we witnessed Snap start its IPO with a bang-even if today's price is now below where it started.
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Dropbox's much-awaited debut marks an end to a long dry spell in the U.S. IPO market for big names in the technology sector. The strong pricing bodes well for other highly anticipated IPOs from tech unicorns, or startups valued at more than $1 billion.
Dropbox has not yet tallied an annual profit, but it did cut losses to $112 million in 2017 from $326 million the year before, while notching 30 percent-plus sales growth, according to the New York Times. "It has an attractive story to justify its need for financing and the market dynamics are good", said Josh Lerner, professor of Investment Banking at Harvard Business School.
Dropbox has 500 million users and competes with Google, Microsoft and Amazon. Its net loss, however, was almost halved, to $111.7 million.
'The strong performance of the Dropbox IPO may open the door for more technology unicorns to IPO throughout the rest of 2018, ' said Sohail Prasad, co-founder and co-CEO of Equidate, a platform for trading of shares in private technology firms. The company says more than 75 percent of Dropbox's business teams linked their accounts to multiple third-party applications.