US-based cloud security technology provider Zscaler has filed for a $100m initial public offering that will enable computing equipment maker Dell and internet and technology conglomerate Alphabet to exit.
Zscaler has built a cloud software platform with integrated security features that allows enterprise users to securely access the internet and software-as-a-service apps securely regardless of where they are situated.
The company’s full-year revenue rose from $80m to $126m between 2016 and 2017, though its net loss also increased from $27.4m to $35.5m over the same period.
The offering will follow $148m in venture funding, $110m of which came from a 2015 series B round that reportedly valued Zscaler at more than $1bn. Alphabet’s CapitalG subsidiary put up $25m for the round, which included data storage equipment maker EMC, since acquired by Dell.
TPG Growth, a growth equity subsidiary of private equity group, led the series B round with an $82m investment. It is the only one of Zscaler’s investors with a stake greater than 5%, holding 8.7% of its shares.
The series B round was filled out by venture capital firm Lightspeed Venture Partners. It had already invested in Zscaler’s $38m series A round in 2012, which was led by an undisclosed strategic backer.
The lead book running managers for the IPO, which will take place on the Nasdaq Global Market, are Morgan Stanley and Goldman Sachs.
BofA Merrill Lynch, Barclays Capital, Deutsche Bank Securities, Credit Suisse Securities and UBS Securities are also book running managers, while Robert W. Baird, BTIG, Needham & Company and Stephens are co-managers.