U.S. IPO Week Ahead: Warner Music Plans The Largest U.S. IPO Of 2020 In A 4 IPO Week


In the busiest week for the IPO market since February, four IPOs plan to raise $2.9 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.

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 (NYSE:NVS). NASH treatment has been elusive to date and the company has not yet started Phase 1 trials in that indication.

U.S. IPO Calendar

Issuer
Business

Deal Size
Market Cap

Price Range
Shares Filed

Top
Bookrunners

Pliant Therapeutics
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
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
Vancouver, WA

$757M
$6,681M

$16-$18
44,500,000

JP Morgan
Morgan Stanley

Provides a data platform for sales, marketing, and recruiting professionals.

Legend Biotech
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.

Street research is expected for GAN (NASDAQ:GAN) on Monday, 6/1, and for Ayala Pharmaceuticals (NASDAQ:AYLA) and Kingsoft Cloud (NASDAQ:KC) 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 (NYSEARCA:IPO) tracks the index, and top ETF holdings include Uber (NYSE:UBER) and Spotify (NYSE: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 (NYSEARCA:IPOS) tracks the index, and top ETF holdings include Meituan-Dianping and Adyen.

Original post

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

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