Date
21 January 2018
Dropbox, founded by Drew Houston in 2007, is said to have made a confidential filing for a US initial public offering. Photos: Bloomberg, Dropbox
Dropbox, founded by Drew Houston in 2007, is said to have made a confidential filing for a US initial public offering. Photos: Bloomberg, Dropbox

Dropbox files confidentially for US IPO: report

Cloud-storage services company Dropbox has filed confidentially for a US initial public offering, according to Bloomberg.

The listing, expected in the first half of this year, will be led by Goldman Sachs and JP Morgan, the report said, citing people familiar with the matter. 

Founded in 2007, Dropbox offers services that help businesses keep documents in a commonly accessible place online without having to build their own server farms.

As of August, 500 million users, including 200,000 companies, store, manage and share files online through the Dropbox cloud service.

In its last private funding round in 2014, Dropbox was valued at US$10 billion. 

The file-sharing startup recorded annualized sales of more than US$1 billion, its chief executive Drew Houston told Bloomberg last year, adding that it has been profitable, excluding interest, taxes, depreciation and amortization.

TechCrunch noted that by confidential filings, companies are allowed to submit IPO registration paperwork to the US Securities And Exchange Commission (SEC) without public scrutiny.

“Most tech companies have been taking advantage of this provision, then reveal their filings about 15 days before the IPO roadshow,” the tech news website wrote.

Another private tech startup, Spotify, the world’s largest paid music service provider, is currently executing plans for a direct listing that allows the firm to skirt the conventional IPO process.

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BN/RC

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