Feb 28 (Reuters) - Cloud storage service Egnyte has hired underwriters for an initial public offering (IPO) in New York that could value it at more than $3 billion, according to people familiar with the matter.

Egnyte has tapped JPMorgan Chase (JPM.N) , opens new tab to lead its preparations for a stock market flotation that could come as early as this year, the sources said, cautioning the plans could change subject to market conditions.

UBS Group (UBSG.S) , opens new tab is also one of the appointed underwriters, one of the sources added.

The sources requested anonymity because the matter is confidential. Egnyte, JPMorgan and UBS declined to comment.

Egnyte, which competes with cloud computing firms such as Box (BOX.N) , opens new tab and Dropbox (DBX.O) , opens new tab, provides storage, governance, and security tools to companies in industries including life sciences, financial services, retail, and publishing.

Demand for cloud computing services is on the rise due to the rapid growth of generative artificial intelligence, which spurs demand for data storage. Technology researcher Gartner expects , opens new tab worldwide end-user spending on public cloud services to grow 20.4% to $678.8 billion in 2024.

Founded in 2007, Egnyte raised $75 million in a funding round led by Goldman Sachs' (GS.N) , opens new tab growth equity arm in 2018 that valued the startup at $460 million. Since then, the company has grown steadily and is now profitable, the sources said.

Egnyte counts Kleiner Perkins and GV, which is backed by Google parent Alphabet (GOOGL.O) , opens new tab, among its other investors.

https://www.reuters.com/technology/cloud-storage-service-egnyte-hires-banks-ipo-sources-say-2024-02-28/