Dropbox, the file-sharing company, has filed for a non-public U.S initial public offering, according to sources familiar with the case. The companies JPMorgan Chase & Co. and Goldman Sachs Group Inc. will be leading the potential listing.
Dropbox is additionally conversing with other banks to fill additional roles on its IPO. One of the confidential sources said that Dropbox would come up with a complete list within the first half of 2018. Representatives for the company, along with the same of JPMorgan and Goldman, declined to comment on this matter.
Dropbox presently has a valuation of $10 billion, and it will be interesting to see how the stock will do after the listing. The tech community and Wall Street will be on their toe to monitor things on this. In this context, Snap Inc. has a degrading run in its presence on public markets, which is evident in its shares going down 15% since March 2017 from its IPO.
Good for Dropbox is that it is entering the public markets with annual sales of over $1 billion, according to CEO Drew Houston (this he mentioned in an interview last year). Along with this, the company has been quite profitable, excluding taxes, depreciation, and other expenses. In the interview, Houston said this is possible due to the company’s focus on business expansion and restraining expenses.
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Since last July, the non-public filing of IPO has become trendier, right after U.S. Securities and Exchange Commission started allowing all companies to file early IPO documents confidentially. This was previously reserved for only smaller companies.
Dropbox is the newest name in the growing list of big tech companies that are looking to go public in the America at such an early stage of 2018. According to the confidential sources, the company’s stock is likely to trade higher after things go public.