Updated Monday, 6/1.
In IPO market's busiest week of the year so far, eight IPOs plan to raise $3.7 billion, including the largest US IPO of 2020.
In what would be the largest IPO year to date, record label giant Warner Music (WMG) plans to raise $1.7 billion at a $12.8 billion market cap. Warner is the third largest record company and music publisher in the world. It has seen a renaissance in the age of music streaming, though revenue growth has been decelerating.
ZoomInfo (ZI), a SaaS platform for sales and marketing data, plans to raise $757 million at a market cap of $6.7 billion. The company saw revenue grow 103% (42% organic) in 2019, and insiders have indicated 40% of the deal.
GenScript immuno-oncology spin-off Legend Biotech (LEGN) plans to raise $350 million at a $2.6 billion market cap, making it the largest biotech IPO of 2020 thus far. The company's lead candidate is being developed with Janssen as a last-line therapy for relapsed and refractory multiple myeloma and is expected to make a biologics license application to the FDA and EU in the 2H20 based on strong trial results.
Payment processor Shift4 Payments (FOUR) plans to raise $300 million at a $1.6 billion market cap. The company provides a suite of integrated multichannel payment products and services, and its customers KFC, Hilton, Kohler, and The Metropolitan Museum of Art. As of March 31, 2020, Shift4 Payments served over 66,000 merchants representing over $6 billion in end-to-end payment volume for the 1Q20.
Chinese delivery platform Dada Nexus (DADA) plans to raise $264 million at a $3.5 billion market cap. Dada Nexus operates JD-Daojia, one of China’s largest local on-demand retail platforms by gross merchandise vlaue in 2019, and Dada Now, a leading local on-demand delivery platform in China by number of orders in 2019. Insiders JD.com and Walmart have indicated on $100 million of the deal.
Inflammatory disease biotech Applied Molecular Transport (AMTI) plans to raise $130 million at a $448 million market cap. The company's lead candidate, AMT-101, is an oral GI-selective interleukin 10 that has completed a Phase 1b trial for ulcerative colitis (UC). The company plans to initiate Phase 2 trials of AMT-101 in UC and related inflammatory indications between 2020 and 2021.
Phase 2 fibrosis biotech Pliant Therapeutics (PLRX) plans to raise $90 million at a $496 million market cap. The company's lead candidate is a therapy for idiopathic pulmonary fibrosis, but it is also developing a therapy for NASH under a $500 million agreement with Novartis. NASH treatment has been elusive to date and the company has not yet started Phase 1 trials in that indication.
Swedish kidney disease biotech Calliditas Therapeutics (CALT) plans to raise $75 million on the Nasdaq at a $467 million market cap. The company is currently listed on the Nasdaq Stockholm (CALTX). Its lead candidate, Nefecon, is targeting autoimmune renal disease IgA nephropathy. It is currently in a global pivotal Phase 3 trial, with topline data expected in the 4Q20.
| U.S. IPO Calendar | |||
|---|---|---|---|
| Issuer Business |
Deal Size Market Cap |
Price Range Shares Filed |
Top Bookrunners |
| Pliant Therapeutics (PLRX) South San Francisco, CA |
$90M $496M |
$14 - $16 6,000,000 |
Citi Cowen |
| Phase 2 biotech developing therapies for the treatment of fibrosis. | |||
| Warner Music (WMG) New York, NY |
$1,715M $12,752M |
$23 - $26 70,000,000 |
Morgan Stanley Credit Suisse |
| World's third-largest record company and music publisher. | |||
| ZoomInfo (ZI) Vancouver, WA |
$757M $6,681M |
$16 - $18 44,500,000 |
JP Morgan Morgan Stanley |
| Provides a data platform for sales, marketing, and recruiting professionals. | |||
| AMT (AMTI) South San Francisco, CA |
$130M $448M |
$12 - $14 10,000,000 |
BofA Jefferies |
| Phase 1 biotech developing novel oral therapies for inflammatory diseases. | |||
| Calliditas Therapeutics (CALT) Stockholm, Sweden |
$75M $467M |
$19.77 3,793,883 |
Citi Jefferies |
| Swedish biotech developing novel therapies for inflammatory kidney disease. | |||
| Dada Nexus (DADA) Shanghai, China |
$264M $3,499M |
$15 - $17 16,500,000 |
Goldman BofA |
| Leading on-demand retail and delivery platform in China. | |||
| Legend Biotech (LEGN) Somerset, NJ |
$350M $2,612M |
$18 - $20 18,425,000 |
Morgan Stanley JP Morgan |
| Clinical stage CAR-T immuno-oncology biotech being spun out of GenScript. | |||
| Shift4 Payments (FOUR) Allentown, PA |
$300M $1,608M |
$19 - $21 15,000,000 |
Citi Credit Suisse |
| Provides secure payment processing solutions. | |||
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Street research is expected for GAN (GAN) on Monday, 6/1, and for Ayala Pharmaceuticals (AYLA) and Kingsoft Cloud (KC) on Tuesday, 6/2.
IPO Market Snapshot
The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 5/28/20, the Renaissance IPO Index was up 13.3% year-to-date, while the S&P 500 was down 6.2%. 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 up 6.3% year-to-date, while the ACWX was down 14.8%. Renaissance Capital’s International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.
