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 US technology company to go public since Snap Inc, people familiar with the matter said on Friday. It has hired Goldman Sachs and JPMorgan Chase to help underwrite the initial offering, said the people briefed on the matter, who asked not to be identified because they were not authorized to speak publicly.
The reports, by Bloomberg, suggested the company will go public in the first six months of the year. Box has struggled to achieve profitability since its 2015 IPO, but Dropbox is said to be profitable already and on a rate to do $1 billion in revenue, according to Bloomberg.
The IPO will be a key test of Dropbox's worth after it was valued at nearly $10 billion in a private fundraising round in 2014. It's set to be one of the most watched tech IPOs of the year. Houston, the company's chief executive, said last January that Dropbox was on a pace to collect $1 billion in sales on an annualized basis and had positive free cash flow. The numbers haven't been disclosed as yet so it's not known just how much money Dropbox is aiming to raise from the IPO.
If Dropbox - last valued by private-market investors at about $10 billion (U.S.) - follows through on an initial public offering, it will become one of the highest-profile technology companies of late to seek a stock market listing.
Dropbox is likely to tout its biggest investment in recent years: its own cloud.
Cloud storage service Dropbox has been around for over a decade. It's spent hundreds of millions of dollars to build data centers and mostly wean itself off of Amazon.com Inc.'s servers, a rare feat for a software business with hundreds of millions of users.
Goldman Sachs had been helping the company prepare IPO documents.