Dropbox to become a public company

Dropbox to become a public company

Data-sharing business Dropbox has filed confidentially for a USA initial public offering, a source close to the matter said on Thursday.

In what may prove to have been anticipation of the IPO process, Dropbox announced in September 2017 that it was appointing Hewlett Packard Enterprise CEO Meg Whitman to its board of directors.

Goldman Sachs and JPMorgan Chase will lead the potential listing, according to the people, who asked not to be identified because the filing wasn't public. Critics have said the law doesn't give investors time to properly assess a company's financial information before they must decide whether or not to buy. This was previously reserved for only smaller companies.

Dropbox, Goldman Sachs and JPMorgan declined to respond on the matter.

It's without a doubt one of the most highly anticipated tech IPOs of 2018. 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. If everything goes according to plan, Dropbox will reportedly list sometime during the first half of 2018.

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Dropbox achieved its $10 billion (roughly Rs. 63,500 crores) private valuation in its last private funding round in 2014. Unlike Snap, Dropbox has a positive cash flow and a gargantuan annual sales figure breaching the $1 billion mark. However, this still does not confirm that the business is profitable on a net basis yet. Naturally, the investment community will want to see how the company's share price will fare in the post-IPO period. Some critics called it too high compared to what the value would be on public markets.

Cloud storage service Dropbox has been around for over a decade.

The company is aiming to begin trading on a stock market in the spring, one of these people added, cautioning that the timing of an IPO is fluid and may change. One reason why Dropbox has been hesitant is due to the experience of ts main competitor Box, which kicked off an initial public offering in 2015.

Dropbox might also point out that its larger user base and confidence on word of mouth to attract potential customers should indicate that it is valued higher than Box.