U.S. IPO Week Ahead: 1 Biotech Expected In The Week Ahead, 4 Deals Could Launch Starting Monday

Only one small biotech is on the calendar for the week ahead as the annual mid-February lull has been drawn out slightly longer than expected. That said, four deals are able to launch on Monday, and another three become eligible the week after, including high-profile deals Zscaler (ZS) (eligible Monday, March 5) and Dropbox (DBX) (eligible Monday, March 12).

U.S. IPO Calendar
Issuer Business	Deal Size Market Cap	Price Range Shares Filed	Top Bookrunners
BioXcel Therapeutics (BTAI) Branford, CT	$60M $210M	$11 - $13 5,000,000	Barclays UBS
Developing new uses of drugs to treat neurological disorders and cancer.

Click to enlarge

BioXcel Therapeutics, which is being spun out of its R&D-focused parent, is expected to raise $60 million in the upcoming week. Lead candidate, BXCL501, is a sublingual thin film formulation for acute treatment of agitation resulting from Alzheimer's disease, schizophrenia and bipolar disease; management plans to initiate a Phase 1b safety study in 2018.

IPO Pipeline Update

Beginning Monday, March 5, cyber security unicorn Zscaler, Minnesota-based bank Bridgewater Bancshares (BWB) and biotechs Taiwan Liposome Co. (TLC) and Arcus Biosciences (RCUS) will become eligible to launch their deals, along with PolyPid (POLY), which is able to launch now. In the following week, decacorn cloud storage provider Dropbox, customer services provider IBEX Holdings (IBEX) and Chinese online course provider Sunlands Online Education (STG) will be able to set terms.

8 Recent Filings Could Launch in the Coming Weeks
Issuer Business	Estimated Deal Size	Sector	Lead Underwriter
PolyPid	$86M	Healthcare	Goldman Sachs
Developing extended-release drugs to prevent surgical site infections.
Zscaler	$200M	Technology	Morgan Stanley
Provides a cloud-based network security service for enterprises.
Taiwan Liposome Co.	$50M	Healthcare	Cantor Fitz.
Developing lipid formulations of approved drugs for pain and eye disease.
Bridgewater Bancshares	$50M	Financials	Sandler O'Neill
Minnesota bank with six branches and $1.6 billion in assets.
Arcus Biosciences	$100M	Healthcare	Citi
Clinical-stage biotech developing cancer immunotherapies.
Dropbox	$500M	Technology	Goldman
Web-based cloud storage provider.
IBEX Holdings	$75M	Industrials	Baird
Provides outsourced customer support and marketing services.
Sunlands Online Education	$300M	Consumer	Goldman (Asia)
Chinese provider of online courses for professional qualifications.

Click to enlarge

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. The Renaissance IPO Index has returned 0.5% year-to-date and the S&P 500 is up 0.5%. Renaissance Capital's IPO ETF (IPO) tracks the index, and top ETF holdings include Snap (SNAP) and US Foods (USFD). The Renaissance International IPO Index is up 3.2% year-to-date, while ACWX is down 0.5%. Renaissance Capital's International IPO ETF (IPOS) tracks the index, and top ETF holdings include Orsted (OTCPK:DNNGY) (DONG Energy) and ASR Nederland (OTC:ASRRF).