((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
(Added context and details on competitors, customers and financing in paragraphs 4 to 10)
Tempus AI, backed by Japanese technology investment firm SoftBank Group
9984.T , is targeting a $6.10 billion valuation for its U.S. IPO, nearly three years after the genetic testing company laid groundwork for its IPO.
The listing of the company, which is led by Eric Lefkofsky, co-founder of e-commerce company Groupon GRPN.O , and is not yet profitable, will test investors’ appetites.
Tempus, which confidentially filed for an IPO in September 2021, aims to raise up to $410.7 million by selling 11.1 million shares at a price between $35 and $37.
Chicago, Ill.-based Tempus’ net loss widened to $289.8 million in 2023, from $214.1 million a year earlier, as total revenue jumped 65.8% to reach $531.8 million.
The company was founded in 2015, about a year after Lefkofsky’s wife was diagnosed with breast cancer. Tempus sells genomic diagnostic tests in oncology and other areas, including neuropsychiatry, radiology and cardiology, to clinicians and hospital systems.
The company, valued at $8.1 billion in 2022, competes with Foundation Medicine, the genomic profiling unit of Swiss drugmaker Roche, Guardant Health GH.O, maker of cancer screening tests, and NeoGenomics NEO.O, provider of oncology tests, among others.
Tempus counts Anglo-Swedish drugmaker AstraZeneca AZN.L and British drugmaker GSK GSK.L among its clients, among others.
According to PitchBook, the company raised $1.42 billion in funding in early March from investors including Alphabet’s Google GOOGL.O, as well as investment managers Franklin Templeton BEN.N and T Rowe Price
TROW.O.
In April, Tempus raised around $200 million from SoftBank in its Series G-5 funding round. Its main shareholders are chief executive Lefkofsky, Kimberly Keywell’s Keeks and investment management firm Baillie Gifford.
Tempus AI will be listed on the Nasdaq Global Select Market under the symbol “TEM”. Morgan Stanley, JP Morgan Securities and Allen & Company are lead underwriters of the offering.
