Dropbox, the cloud computing storage company valued at $10 billion, has confidentially filed the paperwork for an IPO, according to a Bloomberg report on Thursday citing anonymous sources. The company is valued by private investors at United States dollars 10 billion, with Goldman Sachs and JPMorgan Chase set to lead the listing process. The company is hoping to file in the first half of the year.
While Dropbox has faced concerns about its ability to grow new products and the struggles that have beset some of its closest peers, sources told Bloomberg in August that the company was growing its revenue at a healthy clip of about 30%.
Dropbox, which gives companies and individual users a cloud-based portal for sharing files and documents, would join rival Box as a public company once the filing actually goes public.
According to Bloomberg, Dropbox spent hundreds of millions of dollars in recent years on its cloud infrastructure to become less dependent on Amazon's servers, which is hard for a software company with hundreds of millions of users to pull off.
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Dropbox's chief executive Drew Houston stated a year ago that it was cash flow positive, with annual sales of more than $1 billion. Spotify, owner of the world's largest paid music service, plans to execute its unconventional direct listing this quarter, a person familiar with the matter said this month. The listing is created to test Dropbox's most recent valuation, which was set at $10 billion. People privy to the deal are now claiming that the next big tech company to go public will be the file-sharing giant Dropbox.
One big question that hangs over a potential IPO is what sort of valuation Dropbox would command as a public company.
Goldman Sachs and JPMorgan are reportedly leading the listing, though Dropbox looks to be in talks with more banks.
Cloud storage service Dropbox has been around for over a decade. This has enabled it to speed up file transfers while also reducing costs, according to Dennis Woodside, chief operating officer at the company. Naturally, the investment community will want to see how the company's share price will fare in the post-IPO period.