The IPO Buzz: Riding on the NASDAQ’s Wings

The IPO market looks as if it is coming back to life – lifted by the wings of the NASDAQ Composite Index. The NASDAQ closed on Friday, March 9, 2018, at a record high, marking its recovery from its recent pullback.

The NASDAQ ended Friday’s trading at 7,560.81, up 11.6 percent from 6,777.16 on Feb. 8, its 2018 low. In some corners of Wall Street, this could be of some importance. The general thinking is to look for an IPO recovery about three to six weeks after a low has been established. The recent low was established four weeks ago.

This week’s IPO calendar has four names on it. That’s up from none this time a week ago. A couple of offerings look very interesting to certain investors.

Cancer Drugs and Cloud Security

The “IPOs of Interest” are Arcus Biosciences (RCUS – proposed) and Zscaler (ZS – prospectus). Rounding out this week’s list are Bridgewater Bancshares (BWB – proposed) and Opes Acquisition (OPESU – proposed). The total market value of the four is small, $386 million, but a couple of good pops, a better U.S. stock market and the calendar could be coming back.

Arcus, based in Hayward, California, is a clinical-stage biotechnology company. It is engaged in the development of cancer immunotherapies. Its products include a dual antagonist of adenosine receptors, a monoclonal antibody that blocks a protein, an inhibitor for the extracellular production of adenosine within the tumor micro-environment, and a monoclonal antibody that blocks a novel immune checkpoint.

Note: Insiders have indicated for $40 million of the $99.4 million IPO offering.

Zscaler, based in San Jose, California, is a cloud-based information security company. Zscaler provides Internet security, web security, next-generation firewalls, sandboxing, SSL inspection, antivirus, vulnerability management and granular control of user activity in cloud computing, mobile and Internet of things environments. It also provides automated threat forensics and dynamic malware protection against advanced cyber threats, such as advanced persistent threats and spear phishing for more than 6,000 corporate, government and military organizations with more than 15 million paying users.

Note: Insiders have indicated for $5 million of the $110 million IPO offering.

Bridgewater Bancshares, based in Bloomington, Minnesota, is a financial holding company offering its services to commercial real estate investors, small business entrepreneurs and high-net-worth individuals.

Opes Acquisition, based in Mexico City, is a “blank check” company formed to acquire a business that primarily operates in Mexico.

(For more information about these companies and others on the IPO calendar, please check the profiles found on’s website.)

Next Week

For the week of March 19, 2018, the calendar is clean and green, but anything can happen when the SEC’s filing window opens again for business on Monday morning.

Stay tuned.

Disclosure: Neither the author nor anyone else on the staff has a position in any stocks mentioned, nor do we trade or invest in IPOs. The author and staff do not issue advice, recommendations or opinions.