The file-storage company filed papers confidentially to go public, Bloomberg reported Thursday, for a much-delayed and much-anticipated IPO later this year.
Dropbox has since pivoted to focus on winning business clients, and Houston, the company's CEO, has said that Dropbox is on track to generate more than $1 billion in revenue this year.
Reuters reported in June that the company, valued at nearly US$10 billion in a private fundraising round in 2014, was seeking to hire underwriters for an IPO. Dropbox also raised US$1.2 million in Series A funding from Sequoia Capital in 2007, that "along with interest (on that amount) converted to equity as part of the Series A investment, which included a fresh slug of US$6 million", bringing the total amount to US$7.25 million, with the round closed in 2008 and documents filed in 2009.
According to Bloomberg, Goldman Sachs and JPMorgan are leading the listing. Dropbox plans to hire more banks as advisers, they said. 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.
Dropbox and JPMorgan declined to comment on the report.
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. Mutual fund investors at times marked down the value of their stakes in the company. 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.
One big question that hangs over a potential IPO is what sort of valuation Dropbox would command as a public company. Box has since rebounded to a market cap of about $3 billion.
Dropbox is likely to argue that its bigger user base and greater reliance on word-of-mouth to gain consumers should mean that it is valued higher than Box.