Updated Monday, March 30, 2020.
A biotech and a Chinese issuer are tackling a tough US IPO market in the week ahead.
WiMi Hologram Cloud (WIMI) plans to raise $33 million at a $385 million market cap, underwritten by The Benchmark Company. WiMi is a leading player in China’s holographic augmented reality space, an estimated $500 million market that it believes could soar to the tens of billions over the next decade. Focusing on ad services, the founder-owned company is highly profitable (50% net margin the 1H19) and saw growth accelerate to 41% in 2019 (preliminary). That said, Chinese issuers have been hit particularly hard in 2020, with the year's six IPOs averaging -27% compared to -3% for all 2020 IPOs.
Zentalis Pharmaceuticals (ZNTL), Phase 1/2 biotech developing novel small molecule therapies for various cancers, plans to raise $130 million at a $580 million fully diluted market cap. The company has three clinical-stage candidates. Lead candidate ZN-c5 is an oral selective estrogen receptor degrader in development for ER+/HER2-, advanced or metastatic breast cancer.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| WiMi Hologram (WIMI) Beijing, China |
$33M $385M |
$5.50 - $7.50 5,000,000 |
Benchmark Valuable Capital |
| Chinese provider of ad services and software used in holographic augmented reality. | |||
| Zentalis Pharmaceuticals (ZNTL) New York, NY |
$130M $580M |
$16.00 - $18.00 7,650,000 |
Morgan Stanley Jefferies |
| Phase 1/2 biotech developing novel small molecule therapies for various cancers. | |||
Sign up for a free trial of our premium platform, IPO Pro. Follow us on Twitter (@IPOtweet) and register for our updates on the IPO market.
Street research is expected for one company on Monday, 3/30, and lock-ups will be expiring for four companies on Tuesday, 3/31. For access to Street research release dates and lock-up expirations, sign up for a free trial of IPO Pro.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 3/26/20, the Renaissance IPO Index was down 13.3% year-to-date, while the S&P 500 was down 18.6%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Uber (UBER) and Spotify (SPOT). The Renaissance International IPO Index was down 11.5% year-to-date, while the ACWX was down 21.7%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Adyen and Meituan-Dianping.
