SoftBank-backed Tempus AI seeks up to $6.1 bln valuation in US IPO
Adds background and details on competitors, customers and funding in paragraphs 4-10
June 5 (Reuters) -Tempus AI, backed by Japanese tech investment firm SoftBank Group 9984.T, is targeting a valuation of up to $6.10 billion for its U.S. initial public offering, nearly three years after the genetics-testing company laid the ground for its listing.
The listing of the company, which is led by e-commerce marketplace Groupon GRPN.O co-founder Eric Lefkofsky and is yet to be profitable, will test investor appetite.
Tempus, which confidentially filed for an IPO in September 2021, is aiming to raise as much as $410.7 million by selling 11.1 million shares at a price range of $35 to $37.
Chicago, Illinois-based Tempus' net loss widened to $289.8 million in 2023 from $214.1 million a year earlier, while total revenue jumped 65.8% to $531.8 million.
The company was founded in 2015, about a year after Lefkofsky's wife was diagnosed with breast cancer. Tempus sells genomics diagnostics tests across 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 Swiss drugmaker Roche's ROG.S genomic profiling unit Foundation Medicine, cancer test maker Guardant Health GH.O and oncology testing provider NeoGenomics NEO.O, among others.
Tempus' customers include Anglo-Swedish drugmaker AstraZeneca AZN.L and British drugmaker GSK GSK.L, among others.
The company has raised $1.42 billion in funding as of 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, according to PitchBook.
Tempus in April raised about $200 million from SoftBank in its Series G-5 funding round. Its largest shareholders include CEO Lefkofsky, Kimberly Keywell's Keeks and investment management firm Baillie Gifford.
Tempus AI will list on the Nasdaq Global Select Market under the symbol "TEM". Morgan Stanley, J.P. Morgan Securities and Allen & Company are the lead underwriters for the offering.
Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Krishna Chandra Eluri and Mohammed Safi Shamsi
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