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IPO Roundup: Pinterest leads an IPO bonanza this week

The excitement surrounding the Pinterest IPO is so high that DA Davidson analyst Tom Forte began covering the company with a Neutral rating and $16.50 price target even before it goes public
A phone displaying the Pinterest app
San Francisco-based Pinterest operates a pinboard-style social photo sharing platform

A slew of eight IPOs plan to raise nearly $2.5 billion ahead of Easter weekend, in what is shaping up as the busiest week of the 2019 IPO calendar. 

Pinterest Inc (NYSE:PINS), a digital pin board company that is going public, wanted to beat Friday’s holiday. It wound up scheduling its IPO for Thursday — the same day that Zoom, a video conferencing company, will list its shares.

Pinterest, which operates a pinboard-style social photo sharing platform, revealed plans to raise $1.2 billion by offering 75 million shares at a price range between $15 and $17. 

The virtual bulletin board platform allows users to decorate their boards with pictures showcasing interests including food, fashion, travel and lifestyle.

At the midpoint of the range, the San Francisco company will command a market value of approximately $10.6 billion, joining the ranks of richly valued tech firms including ride-hailing service provider Uber Technologies, which has filed an IPO and plans to go public next month.

Launched in 2010, Pinterest plans to list on the New York Stock Exchange under the symbol “PINS.”

Pinterest booked $756 million in sales over the last 12 months.

Goldman Sachs, JP Morgan, Allen & Company, BofA Merrill Lynch, Barclays, Citi, Credit Suisse, Deutsche Bank and RBC Capital Markets are the joint bookrunners on the deal.

Analyst take

MarketWatch reports that DA Davidson analyst Tom Forte began coverage of Pinterest with a Neutral rating and $16.50 price target. Pinterest "provides consumers an impressive visual-based discovery platform for merchandise and advertisers a large and growing global base of consumers with purchase intent," wrote Forte, which is a "powerful combination" that could drive revenue and profit growth over the long run.

Forte, however, argued that the midpoint of the company's expected price range of $15 to $17 a share "already reflects our favorable view of Pinterest including its growth prospects.”

Hookipa Pharma

Hookipa Pharma (NASDAQ:HOOK), a clinical-stage biopharmaceutical company 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 to $16.

At the midpoint of the proposed range, Hookipa Pharma will have a market value of $412 million. The New York City company was founded in 2011 and plans to list on the Nasdaq under the symbol “HOOK.”

Hookipa’s lead infectious disease product candidate, HB-101, is currently in a Phase 2 randomized, double-blinded clinical trial in patients waiting for kidney transplantation from donors. The company’s lead oncology product candidates, HB-201 and HB-202, are in development for the treatment of human papillomavirus-positive cancers. The company plans to file an investigational new drug application with the US Food and Drug Administration for HB-201 and HB-202 in the first half and second half of 2019 respectively. 

Hookipa has entered into a strategic partnership with Gilead Sciences Inc (NASDAQ:GILD) to accelerate building a pipeline of additional infectious disease product candidates in a cost efficient manner.

BofA Merrill Lynch, SVB Leerink and RBC Capital Markets are the joint bookrunners on the deal.

ConversionPoint Holdings

ConversionPoint Holdings Inc (NASDAQ:CPTI), an e-commerce provider of advertising services, announced Monday that it has filed for an IPO with the US Securities and Exchange Commission.

The number of shares to be offered and the price range for the proposed offering have not yet been determined.

The company provides an artificial intelligence integrated SaaS platform for marketing. It said it will list its shares on the tech-laden Nasdaq under the symbol “CPTI.”

The Newport Beach, California, company was founded in 2016 and booked $113 million in sales for the 12 months ended December 31, 2018.

The company said that the proceeds from the IPO will be used to pay for its Inuvo acquisition and pay down debt. Last year ConversionPoint bought publicly traded artificial intelligence provider Inuvo Inc for $75 million to expand its software-as-a-service and managed service offerings.

Oppenheimer and GMP Securities are the joint bookrunners on the deal.

Zoom Video Communications

Zoom Video Communications Inc (NASDAQ:ZM), 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 to $32.

At the midpoint of the proposed range, it would command a market value of $8.7 billion. Salesforce has agreed to invest $100 million in a coexisting private placement. The San Jose, California-based company plans to make its trading debut on the Nasdaq on Thursday trading under the symbol “ZM.”

Zoom Video, which was founded in 2011, booked $331 million in sales over the last 12 months.

Morgan Stanley, JP Morgan, Goldman Sachs, Credit Suisse, BofA Merrill Lynch, RBC Capital Markets and Wells Fargo Securities are the joint bookrunners on the deal.

Brainsway

Brainsway (NASDAQ:BWAY), which sells medical devices that use magnetic stimulation to treat depression and Obsessive-Compulsive Disorder, plans to raise $30 million by offering 2.5 million shares based on an offer price of $11.94, according to the company’s SEC filing.

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.

Greenlane Holdings

Greenlane Holdings (NASDAQ:GNLN), 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 to $16.

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, Florida-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

Brigham Minerals (NYSE:MNRL), which owns oil and gas mineral royalty interests across the US, plans to raise $223 million by offering 13.5 million shares at a price range of $15 to $18.

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, Texas-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.

— Updates with IPOs by Hookipa Pharma, Zoom Video Communications, Brainsway, Greenlane Holdings, Brigham Minerals —

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 


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