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‘Dropbox sneaks in the back door with confidential IPO filing’
Posted on Friday, 12 January 2018 12:24
Document sharing platform Dropbox has reportedly filed paperwork for an initial public offering (IPO) privately in what could be one of the biggest tech listings in recent years.
Bloomberg was first to report on the news, citing people familiar with the matter as saying Goldman Sachs and JPMorgan Chase & Co are leading the flotation, which is likely to take place in the first half of 2018.
Dropbox is said to be in talks with other banks about additional roles in the IPO, which sources believe will be one of the largest of the last few years.
The San Francisco-based firm was worth about USD 10.00 billion following its latest funding round and is already posting revenues around the USD 1.00 billion mark, according to a 2017 interview with chief executive Drew Houston.
Dropbox’s turnover and valuation put it ahead of Snapchat’s position at the time it decided to go public last year; however, the social media platform has put in a disappointing performance since listing as shares have slipped 30.4 per cent to close at USD 14.60 on 11th January 2018, from USD 24.48 at its debut.
That being said, there are a number of other tech businesses eyeing IPOs in 2018, including the highly anticipated flotation of online streaming giant Spotify, which is looking to fetch around SEK 2.80 billion (USD 342.74 million) from the markets and aims to begin trading in the first quarter of 2018.
Dropbox is an online document sharing platform with over 500.00 million users. It offers 30 day free trials and the option to get a standard package for GBP 10.00 per month or an advanced version for GBP 15.00 per month.
The group has been touted for a stock market listing for some time; reports of a potential flotation first emerged back in 2011.
In 2016 sources observed that Dropbox was in negotiations with advisors for an IPO, which at the time was expected to take place in 2017.
This was after the company received a valuation of USD 10.00 million in a 2014 funding round where it raised about USD 325.00 million from Morgan Stanley, BlackRock and T Rowe Price Associates, among others.
Further details on the Dropbox IPO are expected to follow shortly.
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