Relatively Unknown Cloud Security Firm Sets the IPO Stage for Upcoming US Tech Unicorns

​The past week saw the largest tech IPO perform well beyond the Street's expectations, a clinical-stage biopharmaceutical firm, and the debut of two of the largest German IPOs in recent years. 

• This past Friday, Zscaler (NASDAQ: ZS), the San Jose-based enterprise security firm raised $192 million in its initial public offering at an initial price of $16 per share. Within the first few hours of trading, the firm's share price jumped more than 70% and then ended the day up more than 100%. The market's reception toward the first large tech "unicorn" IPO could be a sign of things to come for other anticipated near-term tech IPOs, such as Dropbox and Spotify.

• This past Thursday, Bay Area-based Arcus Biosciences (NYSE: RCUS) raised $120 million when it began its initial public offering. The clinical-stage biopharmaceutical firm focuses its drug development on cancer immunotherapies. The offering will close on Monday, March 19th. The profits from the IPO are anticipated to be used for research, development, and continued drug discovery.  

• On Wednesday, March 14th, Munich-based Signa Holding GmbH announced its intention to list its sporting goods retail group on the Frankfurt Stock Exchange (Deutsche Börse Group). Signa Sports groups German sporting goods retailer Karstadt Sports with some bicycle-related e-commerce activities. The flotation deal may value Signa Sport at roughly 1 billion euros ($1.24 billion). Last month, Signa had failed to acquire Hudson Bay's German retailer Kaufhof for its 3-billion-euro ($3.69 billion) bid.

• On Thursday, March 15th, Munich-based Siemens (ETR: SIE) spun off its medical equipment technology subsidiary via an initial public offering. The new "Healthineers" firm began trading on the Frankfort Stock Exchange under SHL. The debut of Healthineers signals the parent firm's desire to attract external investors beyond its routine industrial engineering and automation operations. The IPO raised more than 4.2 billion euros ($5.2 billion) with the IPO, and the firm is currently valued at 28 billion euros ($34.6 billion).

• Last Thursday, Spotify explained its direct listing plans more in depth during a live-streamed investor event. The music streaming giant intends to go public on April 3rd via a direct listing. The firm's CEO, Daniel Ek, points to the lockup period as a main reason for choosing a direct listing as opposed to a traditional IPO process. With most traditional IPOs, a lockup period - a customary agreement that does not allow employees and early investors to dump shares of the company immediately when the firm goes public - is established to help secure a certain level of stabilization.