Wednesday, January 17, 2018

File-Sharing Giant Dropbox Reportedly Makes Plans to Go Public

If you are one of those investors who specialize in trading shares of technology companies, you might have one more company to play with in the coming months ahead. People privy to the deal are now claiming that the next big tech company to go public will be the file-sharing giant Dropbox.

In fact, San Francisco-based Dropbox has already filed confidentially for a U.S. IPO, according to a Bloomberg report. The publication said that the IPO plan has been confirmed by people who are familiar with the details but declined to reveal the sources’ identities because the filing has not officially been made public at the moment.

According to the unnamed sources, Dropbox, a company privately valued at $10 billion, is gunning for IPO by the first half of 2018. JPMorgan Chase & Co. and Goldman Sachs Group Inc. were named as the possible institutions that will lead in the future listing. Meanwhile, other banks will be approached this month for various roles in connection with the IPO.

At the moment, Dropbox, as well as JPMorgan Chase & Co and Goldman Sachs declined to comment on the issue.

If Dropbox’s IPO pushes through, the company will be under close watch by investors. Naturally, the investment community will want to see how the company’s share price will fare in the post-IPO period. The upcoming IPO follows SnapChat’s disappointing performance since its IPO last March 2017. Snap’s share price had fallen 15 percent from its IPO value.

But there are indications that Dropbox won’t be suffering the same sad fate as Snapchat. Unlike Snap, Dropbox has a positive cash flow and a gargantuan annual sales figure breaching the $1 billion mark. In addition, companies in its line of business seem to be resilient. The company called Box, Dropbox’s competitor that went public back in 2015, has been doing well since then. Box’s share price even managed to climb more than 50 percent since its IPO.

[Featured Image via Dropbox]

The post File-Sharing Giant Dropbox Reportedly Makes Plans to Go Public appeared first on WebProNews.



from
https://www.webpronews.com/file-sharing-giant-dropbox-reportedly-makes-plans-go-public/

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