Dropbox is the biggest so-called unicorn since Snap to test the public market's appetite for tech startups. By the end of trading on Friday, March 23rd, it had climbed by more than 35%, according to a report by Reuters.
Dropbox's expected range was $18 per share to $20 per share, which was was up two dollars a share from the company's earlier estimate of $16 per share to $18 per share.
Dropbox trading under ticker symbol DBX on the Nasdaq closed the day at about $28.50 a share, a significant mark for the company's later-round investors who bought equity at around that price.
After Snap's disappointing IPO - it is now trading roughly 4% below its $17 IPO price - analysts believe the Dropbox and Spotify offerings boost the tech IPO market this year.
Dropbox surged by as much as 44% during its trading debut on Friday, marking a strong start to the most prominent tech initial public offering so far this year.More news: No more free reign to China: Donald Trump after announcing tariffs
The S&P tech index was down 2.73 percent. The last was Snap, Inc.
Hours before its 11.35 am debut on the Nasdaq, the company had announced an IPO price of $21 a share.
The pop in Dropbox's price may bode well for music streaming service Spotify - valued at roughly $19 billion in the private market - that has also filed for a direct listing and will start trading on the New York Stock Exchange on April 3.
At the time, the pricing put the company's valuation at $8.2 billion, $1.8 billion under the valuation the company received after a funding round in 2014. "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.
"But at the same time, the environment is also competitive". Although the paying user base is small, Dropbox forecasts that out of the 500 million, 300 million users are more likely to become paying users in the future due to their characteristics such as email domains, devices and geographic attributes.