Data-sharing business Dropbox Inc is seeking to hire underwriters for an initial public offering that could come later this year, which would make it the biggest USA technology company to go public since Snap Inc, people familiar with the matter said on Friday. The company is hoping to file in the first half of the year.
Dropbox's main competitor, Box Inc, was valued at roughly $1.67 billion in its IPO in 2015, less than the $2.4 billion it had been valued at in previous private fundraising rounds.
This means that once Dropbox makes its filing public, its actual debut should be within weeks.More news: Kremlin calls Senate Democrats' report on election meddling 'unfounded'
Dropbox has said that it has annual sales that exceed $1 billion. Indications are that Goldman Sachs Group Inc. and JPMorgan Chase & Co. will lead the potential listing.
The two lead banks have a history of working with Dropbox. The company declined to comment on the news, as did Goldman Sachs and JPMorgan. But bankers and analysts said numerous biggest potential market debutantes would likely sit on the sidelines for another year, having already raised enormous sums in the private markets. Normally, when a company of this size and magnitude has been around for this long, rumors start swirling about the possibility of it going public.
The cloud-based file sharing company has been valued at $10 billion a few years ago and has been steadily workin towards becoming a pubic company. Dropbox's fast growth was accompanied by free spending and efforts to diversify into other businesses, like a stand-alone photo app, that proved unsuccessful. Its closest point of comparison is Box, another Silicon Valley online data storage provider, but one that focuses more on big corporate clients like General Electric and Procter & Gamble.