Case Study: Zscaler Inc.

Zscaler Inc. IPO

Zscaler’s Initial Public Offering (IPO) consisted of 13.8 million shares of common stock, including 1,800,000 shares sold upon full exercise of the overallotment option, and raised more than $220 million in gross proceeds. Baird served as a co-manager on this public debut.

Deal Overview

Our Equity Capital Markets and Global Investment Banking teams played an integral part in marketing the Zscaler IPO.

  • Price Discovery Driven by Demand: The stock traded positively on the first day, ending the session at $33.00 with an offer to one-day performance of +106.3%.
    • The initial filing range was $10.00-$12.00/share
    • The filing range was revised upward to $13.00-$15.00/share
    • Final pricing of $16.00/share was greater than 45% above the midpoint of the initial range
  • Upsized Deal: The base deal size was upsized by 20% from the initial filing of 10 million shares.
  • Baird Support of Zscaler IPO: Helping our client reach a better outcome.
    • Baird Institutional Equities & Research professionals educated investors about the IT Security industry and Zscaler’s market leadership

Company Overview

Zscaler redefines enterprise security by providing security-as-a-service and securely connecting the right user to the right application on any public or private network.

  • Purpose-built on and for the cloud, Zscaler’s security-as-a-service model reduces the need for traditional security hardware at both inbound and outbound gateways
  • Zscaler blocks more than 100 million threats and performs more than 120,000 unique security updates daily, providing security to more than 2,800 end users in 185 countries
  • Baird’s Technology & Services team was instrumental in positioning Zscaler as a true pioneer, driving fundamental shifts in both architectural design and approach within network security

Andrew Rippy
Andrew Rippy
+1-503- 273-4988
arippy@rwbaird.com
Macie House
Macie House
+1-503-273-4988
mhouse@rwbaird.com
Peter Kies
Peter Kies
+1-414-765-7262 
pkies@rwbaird.com
Katie Kasper
Katie Kasper
+1-414-298-5991
kkasper@rwbaird.com
David Silver
David Silver
+44-207-667-8216
dsilver@rwbaird.com

 

* Source: Dealogic as of March 26, 2018. Includes IPOs with base deal size of more than $15 million.