(Reuters) — Dropbox has raised the price range for its initial public offering by $2 following strong demand for the first big tech IPO this year.

The cloud storage company now expects the offering to be priced between $18 and $20 per share, up from its previous range of $16 to $18.

The new price range suggests the San Francisco company, co-founded in 2007 by Andrew Houston and Arash Ferdowsi, will hit the public market valued at up to $7.85 billion.

Sources had told Reuters on Monday that the offering was oversubscribed.

The company is expected to announce the pricing on Thursday and begin trading on the Nasdaq on Friday.

(Reporting by Sweta Singh and Nikhil Subba in Bengaluru; Editing by Anil D’Silva)