- SoftBank Group backed TempusAI’s public offering, at $37 per share, will begin trading on Nasdaq Global Select on Friday.
- The company specializes in genomic diagnostics, offering tests in oncology, neuropsychiatry, radiology, and cardiology to clinicians and hospitals.
OUR TAKE
Tempus AI’s IPO at $37, with $410.7 million subscribed, shows investors are confident in the company’s potential despite its lack of profitability.
–Sissy Li, BTW media
What happened
Tempus AI, backed by SoftBank Group, priced its U.S. initial public offering (IPO) at $37 per share, raising $410.7 million. This valuation, at the upper end of its targeted range of $35 to $37 per share, values the company at approximately $6.10 billion. Led by Groupon co-founder Eric Lefkofsky, Tempus AI is venturing into the public market despite its lack of profitability, a move that will scrutinise investor appetite.
The company specialises in genomics diagnostics, offering tests in oncology, neuropsychiatry, radiology, and cardiology to clinicians and hospitals. Its shares are set to commence trading on the Nasdaq Global Select Market. The successful pricing of its IPO suggests investor confidence in the potential of Tempus AI’s technology and its ability to capitalise on the growing demand for genomic testing in various medical fields.
Also read: Interlink Telecom Q1 profits soar 113%, subsidiary BLUE’s IPO approved
Also read: Klarna enters major partnership with Uber ahead of anticipated IPO
Why this is important
TempusAI, which uses AI to process medical data, posted a net loss of $266 million on $532 million in revenue last year. The company has said in the filing that Tempus sells “smart diagnostics” as a selling point, using AI technology to help patients find the most suitable treatment plan by collecting and analyzing clinical and genomic data in large quantities.
Capital infusion
By raising $410.7 million through its IPO, Tempus AI gains substantial capital to fuel its expansion plans, invest in research and development, and further develop its product offerings. This influx of capital is crucial for scaling operations and staying competitive in the rapidly evolving healthcare industry.
Industry impact
Tempus AI’s focus on genomics diagnostics has the potential to revolutionise healthcare by enabling personalised treatment plans and improving patient outcomes. Its IPO highlights the increasing importance of genomic testing in various medical fields, including oncology, neuropsychiatry, radiology, and cardiology.
Market validation
The successful pricing of its IPO indicates investor confidence in Tempus AI’s business model and growth potential, despite its lack of profitability. It suggests that there is significant market interest in companies specialising in genomics diagnostics and healthcare technology.
