Tag Archives: IPOS

U.S. IPO Weekly Recap: Dropbox Pops 36% In Decacorn’s Big Debut

The unicorn class just breathed a sigh of relief. Dropbox (Pending:DBX), once the poster child for excessive private valuations, priced above its range at $21 and then popped 36%. The most highly-valued tech IPO since Snap (NYSE:SNAP), Dropbox boasts over $1 billion in annual sales, paired with fast growth and expanding margins. The takeaway: Expect more tech.

Broader markets dropped. This past week, the IPO Index traded off -3.6% and the S&P 500 fell -6.0%. The VIX Volatility Index surged to about 25, the point at which IPOs start postponing.

Two IPOs did postpone this week: Israeli biotech PolyPid (Pending:POLY) and blank check company Terrapin 4. And even with new tariffs roiling Chinese stocks, two deals from China were completed: Sunlands Online Education (STG; -3%) and micro-cap fintech Golden Bull (DNJR; +16%).

3 IPOs During the Week of March 19th, 2018



Market Cap
at IPO

Price vs.

First Day

at 03/23







Leading web-based cloud storage and collaboration platform.

Golden Bull






Provides a peer-to-peer lending platform in China for auto-secured loans.

Sunlands Online Education






A leading provider of online courses for degree-equivalent exams in China.

Out of the box: Dropbox’s down-round leads to an up IPO

Dropbox raised $756 million (25% insider) by pricing above the upwardly-revised range. Its $9.4 billion IPO market cap was still a down-round to the $10 billion valuation it received privately in 2014, but those Series C investors ended the day with a gain. Its stock closed at $28.48, a strong gain of 36%, but still below its opening price. Salesforce (NYSE:CRM) invested $100 million in a concurrent private placement, days after announcing its $6.5 billion acquisition of 2017 software IPO MuleSoft (NYSE:MULE)

We don’t need no (Sunlands Online) Education

Chinese online course provider Sunlands Online Education Group raised $150 million at a $2.0 billion market cap by pricing at the low end. The stock initially popped over 20%, before deteriorating to a loss of -3%. The extremely fast growing company is also extremely unprofitable.

Two IPOs postpone: A biotech and a blank check

Israeli biotech PolyPid postponed its $75 million IPO, citing market conditions. Some recent biotechs have pulled back, and the prevention of surgical site infections is not an especially hot area. Blank check company Terrapin 4 Acquisition (TRTLU), led by Nathan Leight, reduced its proposed offering to $200 million and ultimately postponed; investors may be cautious given the recent performance of Yatra Online (Terrapin 3).

IPO Pipeline Update: 8 new filers including Dell’s Pivotal Software

8 Filings During the Week of March 19th, 2018





FirstCaribbean Bank (FCI)




Leading bank in Barbados, the Bahamas and Cayman Islands spun out of CIBC.

Level One Bancorp (LEVL)



Raymond James

Michigan-based commercial bank with $1.3 billion in assets.

Mereo BioPharma (MREO)


Health Care


Commercializing a portfolio of rare disease drugs acquired from large pharmas.

Pivotal Software (PIVI.RC)



Morgan Stanley

DellEMC spin-off providing a platform for enterprises to manage cloud-based apps.

Surface Oncology (Pending:SURF)


Health Care


Clinical-stage biotech developing next generation antibody cancer therapies.

MorphoSys (MOR)


Health Care


Licensing antibodies to pharmas and developing its own therapy for lymphoma.

Pure Acquisition (PACQU)




Blank check company formed and led by oil and gas veteran Jack Hightower.

GrafTech International (EAF)



JP Morgan

Vertically-integrated manufacturer of graphite electrodes used in steelmaking.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has returned 1.3% year-to-date and the S&P 500 is down 3.2%. Renaissance Capital’s IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Snap (SNAP) and US Foods (NYSE:USFD). The Renaissance International IPO Index is up 3.4% year-to-date, while the ACWX is down 2.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Orsted (DONG Energy) and ASR Nederland.