U.S. IPO Week Ahead: 3 IPOs Led By Highly-Anticipated Dropbox

Includes: DBX, POLY, STG
by: Renaissance Capital IPO Research

Three deals are on the calendar for the week ahead looking to raise a combined $849 million. Highly-anticipated Dropbox (NASDAQ:DBX) leads the week in the largest IPO from a US tech company since Snap (NYSE:SNAP) in the 1Q17. It comes on the heels of 2018's first unicorn Zscaler (NASDAQ:ZS), which traded up 106% on its market debut.

U.S. IPO Calendar


Deal Size
Market Cap

Price Range
Shares Filed


San Francisco, CA


$16 - $18

JP Morgan

Leading web-based cloud storage and collaboration platform.

Petach Tikva, Israel


$21 - $24


Developing extended-release drugs to prevent surgical site infections.

Sunlands Online Education
Beijing, China


$11.50 - $13.50

Goldman (Asia)
JP Morgan

A leading Chinese provider of online courses for professional qualifications.

Freemium web-based cloud storage and collaboration provider Dropbox 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 (NYSE:CRM) 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 (NYSE: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 (NYSE: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.