Dropbox quietly files for IPO

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Dropbox, the file-sharing private company valued at $10 billion (roughly Rs. 63,500 crores), has filed confidentially for a USA initial public offering, people familiar with the matter said.

Dropbox is reportedly in talks with several other banks that may join the fray as well.

Much like how Spotify quietly filed for a public IPO, it looks like Dropbox is following the same route.

Dropbox isn't confirming the filing of the IPO paperwork, which doesn't require the company to go public by any certain date. Indications are that Goldman Sachs Group Inc. and JPMorgan Chase & Co. will lead the potential listing. The IPO would be a key one this year because Dropbox has been a prime candidate to go public following another disappointing year for IPOs.

Dropbox has not made a comment yet as the filing has been private. The listing will test Dropbox's most recent valuation, $10 billion, which has been criticized by some investors as overvalued and outdated. Right now, it's reported that Dropbox is bringing in $1 billion per year in revenue, making it likely that its IPO could prove to be even more successful, as noted by Bloomberg. The company is valued by private investors at United States dollars 10 billion, with Goldman Sachs and JPMorgan Chase set to lead the listing process. Those benchmarks are the product of more than two years of focusing the company, expanding its product suite for businesses and reining in expenses, Houston said at the time. These investors are set for big pay-out should the public flotation of Dropbox go through. The service lets companies keep documents in a commonly accessible place without having to build their own server farms.

Taking on the risk of lending to a private company can typically help a firm's chances in underwriting an eventual IPO.

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