According to regulatory documents that were filed today, Dropbox, a tech company, is set to be valued at $7bn (£5bn) at the initial public offering (IPO) of the firm that is scheduled next week,
According to the documents that were filed with the Securities and Exchange Commission of the United States of America, Dropbox will sell its shares at between $16 and $18, valuing the company at approximately $7bn.
The valuation represents a decline in the company’s last private funding round in 2014 which valued the firm at $10bn.
The filings also show that Salesforce, the US cloud computing company, has agreed to acquire stocks of Dropbox amounting to $100m in a private placement.
Dropbox offers business, and private users cloud computing services to let the users easily share content.
According to its IPO prospectus, it has over 500m registered users across 180 countries.
Last year, it reported a revenue amounting to $1.106bn, representing annual growth of 31 percent. However, the company posted a loss of $111.7m.
Spotify, its fellow tech company, is also lining up a New York IPO which aims to increase up to $1bn.
The Swedish music streaming company stated that the shares of the company had been recently trading at up to $132.50 apiece on private markets which would value the firm at more than $23bn.