Dropbox to become a public company

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Dropbox chief executive Drew Houston
Credit
AP

Online file-sharing firm Dropbox has filed confidentially for an initial public offering in the USA, according to unnamed sources cited by Bloomberg and later confirmed by Forbes.

According to that report, Dropbox reportedly aims to list within the first half of 2018. Dropbox had about 500 million users and 200,000 paying business customers on its books a year ago.

Dropbox is used by hundreds of millions of people worldwide to store and share files.

The sources said Goldman Sachs Group Inc. and JPMorgan Chase & Co. are acting as underwriters, which was reaffirmed by a tipster who spoke separately to CNBC.

Bloomberg reported Thursday that Dropbox had filed for an IPO using the Securities and Exchange Commission's confidential reporting system, which allows Dropbox to submit its initial income statements and balance sheets to the SEC without letting the public pore all over the details.

Dropbox could not be immediately reached for comment. The listing is created to test Dropbox's most recent valuation, which was set at $10 billion.

Unlike money-losing Snap, Dropbox will come to the table with annualized sales of more than $1 billion (roughly Rs. 6,350 crores), Chief Executive Officer Drew Houston said in an interview previous year. Critics have said the law doesn't give investors time to properly assess a company's financial information before they must decide whether or not to buy. Other high-profile companies that could follow Dropbox in upcoming months include Airbnb, WeWork and Uber, as well as companies without quite the same buzz but with the financials to go public, such as Qualtrics.

Cloud storage service Dropbox has been around for over a decade.

The last private valuation for Dropbox was $10 billion in a 2014 funding round.

Dropbox is likely to tout its biggest investment in recent years: its own cloud.

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