Dropbox raises its IPO range

Dropbox CEO on turning down Steve Jobs
Dropbox CEO on turning down Steve Jobs

Dropbox is raising its price tag.

The cloud storage company said it will price its initial public offering in a range of $18 to $20 a share Thursday. That's $2 more than Dropbox had initially stated last week. It will debut on the public market Friday.

It's a positive sign for the IPO. Dropbox now expects to raise up to $720 million on Wall Street, up from the $648 million it originally projected.

The company will be valued at $7.8 billion and will list on the Nasdaq under the stock ticker DBX.

Related: Dropbox and Spotify to test demand for unicorn tech IPOs

Dropbox became a leader in storing and sharing documents, photos and files online. Customers have added more than 400 billion pieces of content to its storage base to date, Dropbox says.

The biggest threat to Dropbox is the crowded field. Apple (AAPL), Google (GOOG), Microsoft (MSFT) and Amazon (AMZN) all have rival sharing services. Dropbox said it only expects "competition to intensify in the future."

Related: Dropbox: The company everyone wants to kill

More than 500 million people have signed up for Dropbox, but only 2% pay for subscriptions. That's part of why Dropbox isn't profitable. Although Dropbox topped a billion in sales last year, it lost $112 million.

Investors are encouraged that Dropbox has narrowed its losses though. Demonstrating profitability isn't yet the most important measure for the company.

Dropbox's business depends on growing its customer base and convincing more of them to become paid users. "Our future growth could be harmed if we fail to attract new users or convert registered users to paying users," the company said as part of its risk factors in the filing.

—CNNMoney's Seth Fiegerman contributed to this report.

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