The company reportedly sees the new line of credit as offering financial flexibility ahead of the IPO. The recent Bloomberg report said, citing people familiar with the matter, discussions are ongoing with advisers, with the advisers suggesting that an IPO could materialize toward the end of 2017. Subsequently, the stock went downhill, hitting a low of $9.12 in February 2016 before making a comeback. After listing at $20.20, up 44 percent from the IPO price of $14, the stock closed the session at $23.23, a gain of 66 percent. It was speculated then the IPO could happen as early as 2017.īox Inc (NYSE: BOX), a rival file-sharing company, had fared badly after its IPO in January 2015. The company reportedly met advisers in August 2016 to get a hang on the valuation its shares could fetch in the eventuality of a public offering.
It was Bloomberg that broke out the news concerning Dropbox' purported interest in getting its shares listed.
The company has about 500 million users as of March 2016. The company was valued at $10 billion in 2014, when it availed of a $500 million line of credit.Ī MIT Technology Review article, quoting people familiar with the company's finances said currently Dropbox's sales might be running at a pace of over $750 per year, up about 88 percent from the $400 million in 2014, with the rapid growth attributed to higher sales of Dropbox Business.ĭespite investing heavily in engineering, sales and IT infrastructure, the company has been cash flow positive since early 2016, the report said. Having set up shop in 2007, the company capitalized on the need to store photos and files in the cloud. The line of credit also allows flexibility with repayment. The advantage a line of credit offers is the flexibility it offers - borrowers can make use of funds in line with their needs, with interest due only on the utilized amount and not the maximum eligible amount. The terms also allow the borrower to access credit from the facility at any time, provided it does not overshoot the maximum limit set and as long as the borrower adheres to the conditions laid down by the agreement. A line of credit is an agreement between a bank and its customer that sets the maximum amount a customer is eligible to borrow.
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