Data- and file-sharing company Dropbox has filed confidentially for an initial public offering in what is likely to be the biggest technology IPO since Snapchat owner Snap (SNAP) in March.
X Dropbox, a tech unicorn that was valued at $10 billion during a funding round in 2014, is looking to launch the IPO in the first half of this year. Goldman Sachs and JPMorgan are expected to be the lead underwriters, according to a report from Bloomberg.
Annual sales at Dropbox exceed $1 billion, company Chief Executive Drew Houston said in an interview last year. It also has been profitable, excluding interest, taxes, depreciation and amortization.
The number of IPOs jumped 52% in 2017 vs. the year before, driven by successful IPOs from biotech and technology companies and the return of Chinese issuers. Among the IPOs was Snap, a high-profile tech unicorn that came public in March, pricing shares at 17 and raising $3.4 billion. Snap shares were down 3.5%, near 14, during afternoon trading on the stock market today.
IBD’S TAKE: IPOs are a seedbed of innovation and can be huge stock winners. They also can reverse quickly. So keep track of IBD’s IPO Leaders column. IBD also can help you understand strong IPO bases. Read this Investor’s Corner to maximize your chances for success with IPOs.
The unicorn designation applies to companies with a private market valuation above $1 billion.
Confidential filings are allowed by the U.S. Securities and Exchange Commission, so that young companies can gauge interest among investors before making the filing public.
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