Dropbox quietly files for a $10bn 2018 IPO

Dropbox IPO has been a long time coming and would be the largest technology flotation since Snap

Dropbox, the popular cloud storage app, has filed for an initial public offering (IPO) using the newly introduced confidential filing method in a bid to minimise publicity in the run-up to its stock market debut.

That's according to Bloomberg, although it isn't the first time that it has been reported that Dropbox is planning to IPO.

Bloomberg's usual 'sources familiar with the situation' say that company, which is currently valued at $10 billion, will be supported by Goldman Sachs and JP Morgan in making the stock exchange listing.

Dropbox is also thought to be in talks with other banks to get additional support on the IPO, but the firm is reportedly seeking a confidential listing to avoid public scrutiny.

Dropbox is also thought to be in talks with other banks to get additional support on the IPO, but the company has reportedly sought a confidential listing to avoid public scrutiny.

Unlike Snap, which went public a year ago, and was quickly affected by a drop in its stock price as its financial performance disappointed, Dropbox has been turning a profit. Its annual revenues are now more than $1 billion, according to CEO Drew Houston.

Only introduced in July 2017, confidential filings enable private companies to conduct public share sales with less pressure from public scrutiny, although they remain regulated by the Securities and Exchange Commission (SEC) the same as any other public share offering.

Dropbox first hit the $10 billion valuation mark in 2014, after completing a private funding round. Although there's some doubt that the firm will be able to reach this valuation after it goes public, the sources believe that stock could still trade highly.

Based in San Francisco, California Dropbox has grown strongly in recent years after it shifted its focus from the personal and student end of the market to corporates and other major organisations.

However, it competes against Google, with Google Drive, Microsoft with OneDrive, and Box, an independent rival that always had a more corporate focus. In 2016, the firm claimed more than 500 million users - most of whom will be using the two gigabyte 'free' version.