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. | |||
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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.The article US IPO Week Ahead: A biotech and a Chinese hologram company take on a tough IPO market originally appeared on IPO investment manager Renaissance Capital's web site renaissancecapital.com.
Investment Disclosure: The information and opinions expressed herein were prepared by Renaissance Capital's research analysts and do not constitute an offer to buy or sell any security. Renaissance Capital's Renaissance IPO ETF (symbol: IPO), Renaissance International ETF (symbol: IPOS), or separately managed institutional accounts may have investments in securities of companies mentioned.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
