16 March 2018 [IPO date]: "Zscaler IPO Doubles In Debut After Pricing Above Range, Raising $192 Million:"
BRIAN DEAGON3/16/2018
Network security company Zscaler ( ZS) was off to a strong start Friday as the initial public offering raised $192 million, shares jumped 72% on the first trade and ended the day worth more than double their IPO price.
Zscaler priced 12 million shares at 16 and opened at $27.50 during morning trading on the stock market today. The stock closed the session up 106.3% to 33.
Shares had been priced above the upwardly revised range of 13 to 15 a share, giving it a market valuation near $1.87 billion. The IPO initially sought to price 10 million shares at a range of 10 to 12.
Zscaler is the first IPO this year involving a tech unicorn, or a company with a market valuation exceeding $1 billion. That is to be followed next week by another tech unicorn, Dropbox ( DBX), then Spotify.
In its prospectus, Zscaler says it's a leader and pioneering developer of cloud-based network security for businesses, with 2,800 customers. Founded in 2007, Zscaler reported revenue of $125.7 million in 2017, up 57% from the prior year, and a net loss of $45 million.
Dropbox on Monday outlined the terms of its IPO. The provider of file storage and data management services plans to raise $612 million by offering 36 million shares at a price range of 16 to 18. Dropbox is expected to begin trading on the Nasdaq, Thursday, March 22, under the ticker DBX. The IPO values Dropbox at about $7.4 billion.
Another closely watched IPO coming up is streaming music giant Spotify, which filed for an initial public offering that seeks to raise $1 billion. Spotify, with a market valuation near $19 billion, says it's the largest music-streaming service provider. Spotify plans to trade on the New York Stock Exchange under the ticker SPOT. It's set to begin trading in early April.
And late Friday, plans for an IPO were filed by Zuora, an enterprise software company used by businesses to develop subscription-based models.
The prospectus said it looks to raise $100 million, though that's considered a placeholder for a deal that could raise much more. The number of shares to be offered and the price range for the proposed offering have not yet been determined.
For its fiscal year ended Jan. 31, Zuora reported revenue of $167.9 million, up 49% from the year-ago period, and a net loss of $47 million. Zuora plans to list on the New York Stock Exchange under the ticker ZUO. The lead underwriters are Goldman Sachs and Morgan Stanley.
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