Despite losing a day, this has been the busiest week of the year for IPOs with 8 IPOs raising $8.9 billion led by Zoom Video (ZM), which popped 72% on its first day of trading after raising $751 million in an IPO that priced above its upwardly revised range. Zoom's first day performance marks the biggest first day return for a decacorn since 2013.
Pinterest (PINS) also priced above the range, raising $1.4 billion at a market cap of $12.7 billion, 20% more than expected. The company also had impressive first day gains, trading up 28%. Despite not yet turning a profit, Pinterest has been able to steadily grow its user base, and with increased monetization efforts, grow revenue by 60% in 2018.
Greenlane Holdings (GNLN) priced above the range and offered additional shares, raising $102 million at a market cap of $713 million. The company popped 24% on its first day, as investors seemed intrigued by the growing cannabis and e-cigarette markets.
Turning Point Therapeutics (TPTX) also offered additional shares, pricing at the high end of the range, raising $167 million at a market cap of $591 million. The company popped 61% on its first day, making it the top performing biotech of the year. It finished the week at +48% from its IPO.
Another biotech, Hookipa Pharma (HOOK), offered fewer shares than anticipated and priced its IPO at the low end of the range, raising $84 million at a market cap of $322 million. After some initial movement, the company ended its first day flat. Intense competition in T cell therapy space may have warded off investors.
Earthquake insurer, Palomar Holdings (PLMR) also priced its IPO at the low end of the range, raising $84 million at a market cap of $339 million. After pricing at the low end, the company popped 27% on its first day of trading. It finished the week at +23% from its IPO.
Brigham Minerals (MNRL) offered additional shares, pricing at the high end of the range, raising $261 million at a market cap of $876 million. The company gained 11% on its first day of trading.
Medical device company Brainsway (BWAY), raised $28 million at a $119 million market cap. The company had a modest gain of 1% on its first day and finished the week slightly higher at +2% from its IPO.
| 8 IPOs During the Week of April 15th, 2019 | |||||
|---|---|---|---|---|---|
| Issuer Business |
Deal Size |
Market Cap at IPO |
Price vs. Midpoint |
First Day Return |
Return at 04/19 |
| Zoom Video (ZM) | $751M | $10,459M | 20% | +72% | +72% |
| Provides a cloud-based video and web conferencing platform. | |||||
| Turning Point Tx (TPTX) | $167M | $591M | 6% | +61% | +48% |
| Early stage biotech developing tyrosine kinase inhibitors for treating cancer. | |||||
| Pinterest (PINS) | $1,425M | $12,663M | 19% | +28% | +28% |
| Operates a pinboard-style social photo sharing platform. | |||||
| Greenlane Holdings (GNLN) | $102M | $713M | 13% | +24% | +24% |
| National distributor of vaporization products and accessories. | |||||
| Palomar Holdings (PLMR) | $84M | $339M | -6% | +27% | +23% |
| Specialty property insurance provider backed by Genstar Capital. | |||||
| Brigham Minerals (MNRL) | $261M | $876M | 9% | +11% | +11% |
| Owns oil and gas mineral royalty interests underlying 68,800 acres across the US. | |||||
| Brainsway (BWAY) | $28M | $119M | 0% | +1% | +2% |
| Sells medical devices that use magnetic stimulation to treat depression and OCD. | |||||
| Hookipa Pharma (HOOK) | $84M | $322M | -7% | +0% | +0% |
| Phase 2 biotech developing T cell immunotherapies for cancer/infectious diseases. | |||||
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.
Five companies submitted initial filings this past week, led by LBOd provider of advanced wound care systems, KCI Holdings (KCIH.RC), formerly known as Acelity. The company had planned to go public under the Acelity name in 2015 but ultimately withdrew its IPO in 2016.
| 5 Filings During the Week of April 15th, 2019 | |||
|---|---|---|---|
| Issuer Business |
Deal Size |
Sector | Lead Underwriter |
| KCI Holdings (KCIH.RC) | $500M | Health Care | JP Morgan |
| LBO'd provider of advanced wound care systems and tissue implants. | |||
| PIMCO Mortgage Trust (PMTG) | $100M | Financials | Credit Suisse |
| Newly formed residential mortgage REIT managed by PIMCO. | |||
| Health Sciences Acq. (HSACU) | $100M | SPAC | Chardan |
| Blank check company formed by RTW Investments to acquire a biopharma or medical technology business. | |||
| ConversionPoint (CPTI) | $40M | Technology | Oppenheimer |
| Provides an AI-integrated SaaS platform for marketing and e-commerce services. | |||
| Sonim (SONM) | $58M | Consumer Discretionary | Oppenheimer |
| Makes mobile phones and software for industrial and public sector customers. | |||
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.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/17/19, the Renaissance IPO Index was up 30.6% year-to-date, while the S&P 500 had a gain of 16.4%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (ELAN) and VICI Properties (VICI). The Renaissance International IPO Index was up 13.7% year-to-date, while the ACWX was up 14.1%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.
