Dropbox Inc. , the file-sharing personal company valued at $10 billion dollars, has filed confidentially for a Oughout. S. initial public offering, individuals familiar with the matter said.
Goldman Sachs Group Incorporation. and JPMorgan Pursue & Co. may lead the potential listing, according to the individuals, who asked not to be recognized because the filing wasn’ t open public. Dropbox is talking to other banking institutions this month to fill extra roles on the IPO, the people stated. The company is aiming to list within the first half of this year, one of the individuals said.
Representatives for Dropbox, Goldman Sachs and JPMorgan declined to remark.
A share sale by San Francisco-based Dropbox, one of the closely watched group of high-profile personal tech companies with multibillion-dollar values, would follow Snap Inc. ’ s disappointing step into the public marketplaces. How the stock fares post-listing is going to be an ongoing focus for both Wall structure Street and the tech community. Click shares are down 15 % from its IPO last March.
Unlike money-losing Snap, Dropbox will come to the desk with annualized sales of more than $1 billion, Chief Executive Officer Drew Houston mentioned in an interview last year. It’ s i9000 also been profitable, excluding interest, fees, depreciation and amortization. Those people benchmarks are the product of more than 2 yrs of focusing the company, expanding the product suite for businesses plus reining in expenses, Houston stated at the time.
Dropbox could be one of the greatest U. S. enterprise technology businesses to list domestically in recent years. Very first Data Corp. went public in a market value of about $14 billion within 2015 — the biggest such B?RSEGANG (?STERR.) in the past five years.
Dropbox joins a growing list of huge tech companies preparing to go open public in the U. S. early this season. Apollo Global Management LLC’ s i9000 security company ADT Inc. is aiming to raise just as much as $2. 1 billion within an IPO expected to price on January. 18. Spotify, owner of the world’ s largest paid music program, plans to execute its non-traditional direct listing this quarter, an individual familiar with the matter said this 30 days.
Non-public filings have grown to be more common since July, when the Oughout. S. Securities and Exchange Payment began allowing many companies to file early IPO files confidentially — a perk formerly reserved for smaller businesses.
Dropbox attained its $10 billion private value in its last private funding circular in 2014. While it’ t uncertain whether the company will be able to at first sell shares above that value, the stock could trade increased once it’ s public, the individuals said.
As of August, Dropbox had 500 million users, which includes 200, 000 businesses, storing plus sharing files online through the cloud service. The service allows companies keep documents in a typically accessible place without having to build their very own server farms. The company will have to display potential investors how it’ s i9000 differentiating its core file-sharing companies newer collaboration tools from the loves of Google, Microsoft Corp. plus Box Inc.
Dropbox is likely to tout its greatest investment in recent years: its own cloud. It’ s spent hundreds of millions of bucks to build data centers and mainly wean itself off of Amazon. possuindo Inc. ’ s servers, an unusual feat for a software business along with hundreds of millions of users. That’ t made it easier for Dropbox to slice costs while speeding file exchanges, Chief Operating Officer Dennis Woodside said in an interview last year.
The two lead banks possess a history of working with Dropbox. Goldman Sachs advised the company on earlier financing rounds and extended the company credit score, while JPMorgan led a $600 million credit line to Dropbox this past year, the people said.
Accepting the risk of lending to a private firm can typically help a firm’ s chances in underwriting a good eventual IPO. JPMorgan led the credit line extended in order to Dropbox, along with Goldman Sachs, Financial institution of America Corp., Deutsche Financial institution AG, Macquarie Group Ltd. plus Royal Bank of Canada, individuals familiar with the matter said last 03.
Goldman Sachs have been helping the company prepare IPO documents.