Zentalis
IPO News: Zentalis Pharmaceuticals Prices Upsized 9.2mm Share IPO At Top End of Range

Thursday evening, April 2, 2020, Zentalis Pharmaceuticals, LLC (Nasdaq: ZNTL), priced its upsized 9.18mm share (originally 7.7mm shares), 100% primary IPO at $18, the top end of the $16-$18 marketing range. At the IPO price, the offering raises ~$165mm in proceeds for the company, which represents ~27% of ZNTL’s post-IPO market value (assuming no exercise of the overallotment option).

Morgan Stanley, Jefferies, SVB Leerink and Guggenheim Securities acted as bookrunners on the transaction.

Zentalis major holders include Matrix Capital Management, Viking Global, and Executives & Directors. Other private investors include Redmile Group, Farallon Capital, Perceptive Advisors, Surveyor Capital (a Citadel company) and Eventide Asset Management.

Solebury Capital advised the Zentalis team on the offering and Solebury Trout is advising on ongoing IR and corporate communications efforts. We developed a case study for this IPO and you can find it here.

Zentalis is developing best-in-class, novel small molecule therapeutics that target fundamental pathways in cancer. Lead programs are an oral SERD to be used in metastatic and adjuvant breast cancer settings and a next-generation DNA Damaged Response (DDR) drug targeting WEE1 for solid tumors. The Company has raised over $160M to date.

Overview:

  • Founded in 2015
  • Prolific chemistry platform with four INDs filed and another two more INDs planned in the next two years
  • Partnerships with large pharma and academia to extract full value
  • Oral SERD has potential to be best-in-class with anticipation to start pivotal trials in next twelve to eighteen months
  • Last financing (12/09/2019) raised total of $85M

Zentalis Pharmaceuticals

NASDAQ: ZNTL

Initial Filing Date: 03/06/20

Launch Date: 03/30/20

Pricing Date: 04/02/20

IPO Price: $18.00

Price Range: $16.00 - $18.00

Initial Shares Offered (Pre-Shoe | mm): 7.7

Revised Shares Offered (Pre-Shoe | mm): 9.2

Primary Shares (mm): 9.2

Secondary Shares (mm): 0.0

Amount Offered (mm): $165.2

% Secondary: 0.0%

Shares Outstanding (mm): 34.4

Market Value at Pricing (mm): $619.3

Offering as % of Market Value: 26.7%

Bookrunners: Morgan Stanley | Jefferies | SVB Leerink | Guggenheim Securities

Major Holders: Matrix Capital | Viking Global | Executives & Directors

Industry: Biotechnology

 

Please let us know if you have any questions.