Dropbox confidentially files for IPO

13 January, 2018, 01:20 | Author: Darrell Baldwin
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Dropbox chief executive Drew Houston
Credit
AP

Data- and file-sharing company Dropbox has filed confidentially for an initial public offering in what is likely to be the biggest technology IPO since Snapchat owner Snap (SNAP) in March. JPMorgan Chase & Co. and Goldman Sachs Group Inc. were named as the possible institutions that will lead in the future listing.

According to the unnamed sources, Dropbox, a company privately valued at $10 billion, is gunning for IPO by the first half of 2018. Whatever the evaluation it stands that San Francisco headquartered Dropbox remains one of highest-worth venture-backed companies that remains in private hands.

With 500m users including 200,000 businesses, according to figures from last August, the company is a big player in the cloud storage market, but will have to prove to potential investors how its offering is different to those of Google, Microsoft and other rivals. The music streaming provider is pursuing an unusual direct listing that will not have any underwriters backing it, an arrangement that could create additional risks. He says the company has been more profitable, which helps the company expand its services. For many years now, many have wondered why Dropbox was constantly holding out on going public, but better late than never.




The last private valuation for Dropbox was $10 billion in a 2014 funding round. Other high-profile companies that could follow Dropbox in upcoming months include Airbnb, WeWork and Uber, as well as companies without quite the same buzz but with the financials to go public, such as Qualtrics. Representatives for the company, along with the same of JPMorgan and Goldman declined to comment on this matter.

Dropbox is a file hosting service operated by American company Dropbox, Inc. According to CEO Dennis Woodside, the company has spent hundreds of millions of dollars to build data centres, allowing it to cut costs while improving file transfer speeds.

Venture capitalist Venky Ganesan said that an IPO by the file storage and sharing company would be seen as a forerunner for start-ups, provided that they are able to realize the need to grow out of what he described as the Peter Pan state of mind.

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