Dropbox files confidential IPO

The Drop Box logo is seen in this illustration

The Drop Box logo is seen in this illustration

Reuters reported in June that the company, valued at nearly $10 billion in a private fundraising round in 2014, was seeking to hire underwriters for an IPO. The company is taking a much more conventional approach to the IPO than Spotify Ltd., which is also said to have quietly filed for a public offering recently. The IPO would be a key one this year because Dropbox has been a prime candidate to go public following another disappointing year for IPOs.

The company is aiming to begin trading on a stock market in the spring, one of the people briefed on the matter added, cautioning that the timing of an IPO is fluid and may change.

Dropbox has not made a comment yet as the filing has been private. The listing is created to test Dropbox's most recent valuation, which was set at $10 billion. How the stock fares post-listing will be an ongoing focus for both Wall Street and the tech community. First Data went public at a market value of about $14 billion (roughly Rs. 89,000 crores) in 2015 - the biggest such IPO in the past five years. 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. Dropbox revealed in August that it had 500 million users, including 200,000 paying businesses customers, storing and sharing files online through its cloud service. The service lets companies keep documents in a commonly accessible place without having to build their own server farms.

The two lead banks have a history of working with Dropbox. There has been no official confirmation about this just yet, either from Dropbox or Goldman Sachs and JPMorgan for that matter.

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