Dropbox shares jumped almost 40 percent on the first day of trading

Above Dropbox app Image Credit Paul Sawers  VentureBeat

The company says more than 90 percent of Dropbox's revenue comes from individual users purchasing subscriptions.

The company sold 36 million shares, and a source told CNBC the offering was 25 times oversubscribed.

Despite the Facebook data scandal, very little can take the shine off what is one of the most highly anticipated tech IPOs since Snap previous year.

The file-sharing company will start trading on Nasdaq at some point Friday under the symbol "DBX".

DropBox enters the business with having a good amount of consumers, but the giants like Google and Apple making an impact in the cloud storage industry have pushed back DropBox to backfoot.

Dropbox collected revenue of more than $1 billion in 2017 and acquired around 500 million registered users when it revealed about its plans to go public in February. This pricing has given Dropbox an initial capitalization of more $8.2 billion which is lower than $10 billion valuation that the company got in 2014 private funding. The company has a positive cash flow and is edging close to producing a profit, while revenue growth is over 30% higher than past year. Until now, it was financed by private investors - including venture capital firms Sequoia Capital and Accel Partners - who valued the start-up at $9.4 billion, according to the research firm CB Insights. The company met with its underwriting team-led by Goldman Sachs Group Inc. and JPMorgan Chase & Co. -to set the terms of its offering at Goldman's headquarters just after a sharp selloff in the stock market Thursday.

Dropbox has made a public offering this time around. Dropbox is a computing service that allows customers to store documents, videos, photographs and other files in the cloud. Its full-year net loss, meanwhile, almost halved to $111.7 million.

Dropbox co-founder and Chief Executive Officer Andrew Houston will have a 24 per cent of the company after selling 2.3 million shares in the offering. But there are also many smaller, more business-oriented companies, such as cybersecurity software provider Tenable Network Security Inc., which Reuters today reported had hired investment bank Morgan Stanley for a possible fall IPO.

Like Snap, Dropbox warned prospective investors that it may never be profitable.

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