Tempus's Shares Surge 9% on First Day of Trading, Reflecting Investor Interest in Health Tech with AI Potential
Tempus, a genomic testing and data analysis company founded by Eric Lefkofsky, the former founder of Groupon, made its debut on Nasdaq with a 15% increase in opening price on Friday.
The company priced its IPO at $37 per share on Thursday, at the top of its $35 to $37 price range, raising nearly $411 million with a fully diluted valuation exceeding $6 billion. Despite a lower IPO price compared to previous valuations, Tempus closed its first trading day at $40.25, representing a 9% increase from the IPO price.
Tempus, although unprofitable, managed to launch its IPO successfully during a tepid market for public offerings. With $531 million in revenues in 2023 and a net loss of $290 million, the company aims to achieve profitability by 2025.
Focusing on utilizing technology and genomic data, Tempus is also emphasizing its AI capabilities. Although AI revenue was only a small portion of its 2023 revenue, Tempus intends to integrate AI into its diagnostic tools extensively.
Eric Lefkofsky, the company's founder, holds a significant stake in Tempus and controls a majority of shareholder voting power. Notable shareholders include Baillie Gifford, NEA, Revolution, and T. Rowe Price. With a Series G5 funding round from SoftBank in April, Tempus continues to expand and innovate in the health tech sector.
This marks Lefkofsky's fourth company to go public, following his success with Groupon. As Tempus strives for growth and profitability, it remains a key player in the evolving landscape of genomic testing and AI-driven healthcare solutions.
