Three deals are on the calendar for the week ahead looking to raise a combined $849 million. Highly-anticipated Dropbox (DBX) leads the week in the largest IPO from a US tech company since Snap (SNAP) in the 1Q17. It comes on the heels of 2018's first unicorn Zscaler (ZS), which traded up 106% on its market debut.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Dropbox (DBX) San Francisco, CA |
$612M $7,640M |
$16 - $18 36,000,000 |
Goldman JP Morgan |
| Leading web-based cloud storage and collaboration platform. | |||
| PolyPid (POLY) Petach Tikva, Israel |
$75M $370M |
$21 - $24 3,333,333 |
Goldman Cowen |
| Developing extended-release drugs to prevent surgical site infections. | |||
| Sunlands Online Education (STG) Beijing, China |
$163M $2,170M |
$11.50 - $13.50 13,000,000 |
Goldman (Asia) JP Morgan |
| A leading Chinese provider of online courses for professional qualifications. | |||
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Freemium web-based cloud storage and collaboration provider Dropbox (DBX) is targeting $612 million at a $7.6 billion market value with insiders selling 25% of the deal. Dropbox has maintained 30%+ growth to over $1 billion in sales with strong free cash flow generation ($260 million in 2017). Investors will likely be drawn to the company's differentiated product offering, compelling valuation and strong trading of its high-growth tech peers. Shareholder and partner Salesforce plans to invest $100 million in a concurrent private placement at the IPO price.
Clinical-stage surgical infection biotech Polypid (POLY) is looking to raise $75 million with insiders indicating on up to $19.5 million (26%) of the offering. Its D-Plex technology is formulated as a slow-release antibiotic reservoir given in a single injection that is designed to provide local prevention of bacterial infections at surgical sites. The most advanced candidate, D-Plex 100, is currently in a Phase 1b/2 trial and management plans to start a Phase 3 trial in the US and Europe later this year.
Chinese online education provider Sunlands Online Education Group (STG) is expected to raise $163 million at a $2.2 billion market value. The company focuses on government-approved Self-taught Higher Education (STE) exam tutoring for 18 types of bachelor's and professional degrees. It increased student enrollment by 72% and billings per new student enrollment increased by 56% in 2017. Shareholders Orchid Asia and New Oriental (NYSE: EDU) have agreed to invest $40 million in a concurrent private placement.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has returned 5.0% year-to-date and the S&P 500 is up 2.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snap (SNAP) and US Foods (USFD). The Renaissance International IPO Index is up 5.6% year-to-date, while the ACWX is up 1.0%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.
