U.S. IPO Week Ahead: Pinterest And Zoom Headline Year's Busiest Week With 8 IPOs

|
Includes: BWAY, GNLN, HOOK, MNRL, PINS, PLMR, TPTX, UBER, ZM
by: Renaissance Capital IPO Research
Summary

A whopping eight IPOs plan to raise $2.5 billion ahead of the Easter holiday weekend, the busiest week of the 2019 IPO market.

While April won't have much pricing activity after this week, May already looks busy, with 12 new filings this past week, including Uber.

Aside from this week's headliner tech unicorns Pinterest and Zoom, the IPO market is broadening beyond biotech and tech, with offerings from a vaping products distributor (Greenlane), an insurer (Palomar), and an energy company (Brigham Minerals).

A whopping eight IPOs plan to raise $2.5 billion ahead of the Easter holiday weekend, the busiest week of the 2019 IPO market. Year-to-date, 26 IPOs have raised $6.6 billion. While April won't have much pricing activity after this week, May already looks busy, with 12 new filings this past week, including Uber (UBER).

Aside from this week's headliner tech unicorns Pinterest (NYSE:PINS) and Zoom (NASDAQ:ZM), the IPO market is broadening beyond biotech and tech, with offerings from a vaping products distributor (Greenlane (NASDAQ:GNLN)), an insurer (Palomar (NASDAQ:PLMR)), and an energy company (Brigham Minerals (NYSE:MNRL)).

Pinterest is the week's largest IPO, expected to raise $1.2 billion at a proposed valuation of $10.6 billion. The photo collection company is coming below its last private round, a smart move given where Snap (NYSE:SNAP) and other close peers are trading. With almost 300 million monthly active users, Pinterest is now ramping up its monetization efforts, growing sales by 60% in 2018 to $756 million. While it has not yet turned a profit, the company appears to be getting close, with an EBITDA margin of -5% (-$39 million).

Zoom Video Communications could also become a $10-billion public tech company by week's end. Planning to raise $626 million at a valuation of $8.7 billion, Zoom combines blazing-fast growth (118% y/y) with profits (2% net margin). Competing with Skype, Hangouts, and others, Zoom's better-quality video service has given it viral growth at businesses, and more recently, it has succeeded at winning large enterprise customers.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Brainsway (BWAY)
Jerusalem, Israel

$30M
$129M

$11.94
2,500,000

Cantor Fitz.
Raymond James

Sells medical devices that use magnetic stimulation to treat depression and OCD.

Palomar Holdings
La Jolla, CA

$90M
$362M

$15 - $17
5,625,000

Barclays
JP Morgan

Specialty property insurance provider backed by Genstar Capital.

Brigham Minerals
Austin, TX

$223M
$786M

$15 - $18
13,500,000

Credit Suisse
Goldman

Owns oil and gas mineral royalty interests underlying 68,800 acres across the US.

Greenlane Holdings
Boca Raton, FL

$80M
$620M

$14 - $16
5,333,333

Cowen
Canaccord

National distributor of vaporization products and accessories.

HOOKIPA Pharma (NASDAQ:HOOK)
New York, NY

$100M
$412M

$14 - $16
6,666,667

BofA ML
Leerink

Phase 2 biotech developing T cell immunotherapies for cancer/infectious diseases.

Pinterest
San Francisco, CA

$1,200M
$10,637M

$15 - $17
75,000,000

Goldman
JP Morgan

Operates a pinboard-style social photo sharing platform.

Turning Point Therapeutics (NASDAQ:TPTX)
San Diego, CA

$125M
$524M

$16 - $18
7,352,941

Goldman
Leerink

Early stage biotech developing tyrosine kinase inhibitors for treating cancer.

Zoom Video
San Jose, CA

$626M
$8,742M

$28 - $32
20,869,564

Morgan Stanley
JP Morgan

Provides a cloud-based video and web conferencing platform.

Pinterest, which operates a pinboard-style social photo sharing platform, plans to raise $1.2 billion by offering 75.0 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, it would command a market value of $10.6 billion. Pinterest, which was founded in 2010, booked $756 million in sales over the last 12 months. The San Francisco, CA-based company plans to list on the NYSE under the symbol PINS. Goldman Sachs, J.P. Morgan, Allen & Company, BofA Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank and RBC Capital Markets are the joint bookrunners on the deal.

Zoom Video Communications, which provides a cloud-based video and web conferencing platform, plans to raise $626 million by offering 20.9 million shares at a price range of $28.00 to $32.00. At the midpoint of the proposed range, it would command a market value of $8.7 billion. Zoom Video, which was founded in 2011, booked $331 million in sales over the last 12 months. The San Jose, CA-based company plans to list on the Nasdaq under the symbol ZM. Morgan Stanley, J.P. Morgan, Goldman Sachs, Credit Suisse, BofA Merrill Lynch, RBC Capital Markets and Wells Fargo Securities are the joint bookrunners on the deal. Salesforce (NYSE:CRM) has also agreed to invest $100 million in a concurrent private placement.

Greenlane Holdings, a national distributor of vaporization products and accessories, plans to raise $80 million by offering 5.3 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, Greenlane Holdings would command a market value of $620 million. Greenlane Holdings, which was founded in 2005, booked $179 million in sales over the last 12 months. The Boca Raton, FL-based company plans to list on the Nasdaq under the symbol GNLN. Cowen and Canaccord Genuity are the joint bookrunners on the deal.

Brigham Minerals, which owns oil and gas mineral royalty interests underlying 68,800 acres across the US, plans to raise $223 million by offering 13.5 million shares at a price range of $15.00 to $18.00. At the midpoint of the proposed range, it would command a market value of $786 million. Brigham Minerals, which was founded in 2012, booked $67 million in revenue over the last 12 months. The Austin, TX-based company plans to list on the NYSE under the symbol MNRL. Credit Suisse, Goldman Sachs, Barclays and RBC Capital Markets are the joint bookrunners on the deal.

HOOKIPA Pharma, a Phase 2 biotech developing T cell immunotherapies for cancer and infectious diseases, plans to raise $100 million by offering 6.7 million shares at a price range of $14.00 to $16.00. At the midpoint of the proposed range, HOOKIPA Pharma would command a market value of $412 million. The New York, NY-based company was founded in 2011 and plans to list on the Nasdaq under the symbol HOOK. BofA Merrill Lynch, SVB Leerink and RBC Capital Markets are the joint bookrunners on the deal. Insiders intend to purchase $40 million of the IPO (40% of the deal).

Palomar Holdings, a specialty property insurance provider backed by Genstar Capital, plans to raise $90 million by offering 5.6 million shares at a price range of $15.00 to $17.00. At the midpoint of the proposed range, it would command a market value of $362 million. Palomar, which was founded in 2014, booked $73 million in revenue over the last 12 months. The La Jolla, CA-based company plans to list on the Nasdaq under the symbol PLMR. Barclays, J.P. Morgan and Keefe Bruyette Woods are the joint bookrunners on the deal.

Turning Point Therapeutics, an early stage biotech developing tyrosine kinase inhibitors for treating cancer, plans to raise $125 million by offering 7.4 million shares at a price range of $16.00 to $18.00. At the midpoint of the proposed range, it would command a market value of $524 million. The San Diego, CA-based company was founded in 2013 and plans to list on the Nasdaq under the symbol TPTX. Goldman Sachs, SVB Leerink and Wells Fargo Securities are the joint bookrunners on the deal. Insiders intend to purchase $50 million of the IPO (40% of deal).

Brainsway, which sells medical devices that use magnetic stimulation to treat depression and OCD, plans to raise $30 million by offering 2.5 million shares based on an offer price of $11.94, its last trade on the Tel Aviv Stock Exchange (TASE: BRIN). At that price, it would command a market value of $129 million. Brainsway, which was founded in 2003, booked $16 million in sales over the last 12 months. The Jerusalem, Israel-based company plans to list on the Nasdaq under the symbol BWAY. Cantor Fitzgerald, Raymond James and Oppenheimer & Co. are the joint bookrunners on the deal.

Last week, there were 3 IPO pricings. Jumia Technologies (NYSE:JMIA) was the week's winner, up more than 70% from its IPO price.

IPO Market Snapshot

The Renaissance IPO Indices are market cap weighted baskets of newly public companies. As of 4/11/19, the Renaissance IPO Index was up 33.0% year-to-date, while the S&P 500 had a gain of 15.9%. Renaissance Capital's IPO ETF (NYSE: IPO) tracks the index, and top ETF holdings include Elanco (NYSE:ELAN) and VICI Properties (OTC:VICI). The Renaissance International IPO Index was up 12.2% year-to-date, while the ACWX was up 12.9%. Renaissance Capital's International IPO ETF (NYSE: IPOS) tracks the index, and top ETF holdings include SoftBank and Xiaomi.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.