Executing a Successful IPO During a Pandemic
Solebury Capital and Solebury Trout advised Zentalis through their successful Initial Public Offering on April 2, the first IPO to come out since the COVID-19 pandemic shutdown. Zentalis utilized the full suite of Solebury services—Investor Relations, Corporate Communications and Capital Markets Advisory—to support its fund raising through this unprecedented time.
- Solebury Trout supported Zentalis as it came out of stealth in late 2019 by announcing an $85mm Series C, organizing meetings and bespoke engagements with leading institutional investors prior to Testing-the-Waters (TTW);
- Solebury Capital acted as IPO advisor;
- Extensive TTW meetings organized by Solebury Trout and the banks during and in the weeks following JPM conference;
- S-1 filed publicly March 6, 2020, two days before World Health Organization declares COVID-19 a pandemic;
- The S&P 500 traded down 16% from filing to launch, falling as much as 26% during the period prior to launch; VIX index at launch of roadshow: 66%;
- Abbreviated, four-day virtual roadshow;
- Solebury Trout’s Corporate Communications coordinated the first virtual bell ringing on the NASDAQ;
- A new corporate website and IR website, launched with the IPO, was created by Solebury Trout Corporate Communications.
Deal Statistics at IPO
Filing Date: 03/06/2020
Launch Date: 03/30/2020
Pricing Date: 04/02/2020
Marketing Range: $16.00 - $18.00
Offer Price: $18.00
One Day Price Change: +28.9%
Initial Pre-Shoe Size: 7.7mm
Revised Pre-Shoe Size: 9.2mm
% Secondary: 0%
Total Proceeds: $190 mm
Market Cap: $619.3mm
% of Market Value: 26.7%
Banks – Morgan Stanley, Jefferies, SVB Leerink, Guggenheim
- First healthcare IPO to launch with a VIX north of 50;
- First 100% virtual roadshow IPO executed over a four-day marketing effort with no weekend risk;
- IPO was upsized by 20% from $130mm to $165mm and priced at the high end of the marketing range, full overallotment exercised for $190mm in gross proceeds to the issuer;
- Valuation at IPO was a 1.4x step-up from the valuation at Series C, announced just 4 months prior;
- Shares closed +28.9% on the first day of trading, despite the elevated VIX index.
- Founded in 2015, focused on the creation of differentiated small molecule treatments targeting fundamental, well known biological pathways of cancer;
- Proprietary Integrated Discovery Engine has led to the filing of four INDs since inception, with multiple ongoing clinical studies;
- Lead candidate oral SERD in Phase 1/2 trial for advanced or metastatic breast cancer;
- Experienced management, seasoned scientific advisory board and support from leading life sciences investors including Matrix Capital, Tybourne, Viking, Redmile, Farallon, Perceptive, Surveyor and Eventide.