(Bloomberg) — Tempus AI, a technology platform that uses artificial intelligence to process health data, priced its initial public offering at the top of market expectations to raise $410.7 million.
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Joining a surge of companies going public while touting their AI capabilities, Tempus sold 11.1 million shares for $37 a share after offering at $35 to $37 a share, it said in a statement Thursday confirming an earlier report by Bloomberg News.
The company's IPO price gives it a market capitalization of $6.1 billion, based on the number of shares outstanding listed in a filing with the U.S. Securities and Exchange Commission.
Founded in 2015, Chicago-based Tempus AI describes its business as developing “intelligent diagnostics” for precision medicine.
The company's platform, which connects test results with patients' own clinical data, is used by more than 7,000 physicians across hundreds of provider networks, according to the company's filing. The company has about 2,300 employees, about 250 of whom hold medical degrees or doctoral degrees.
Tempus AI expects to post a net loss of $214 million on revenue of $532 million in 2023, compared with a net loss of $290 million on revenue of $321 million the year before, according to the filing.
The company's major investors include founder and CEO Eric Lefkofsky, as well as entities affiliated with Kimberly Keywell's firm, Baillie Gifford & Co. The company has a dual-share structure, with Lefkofsky receiving 65% of the voting power after the IPO.
The offering is being led by Morgan Stanley, JPMorgan Chase & Co. and Allen & Co. The company's shares are expected to begin trading Friday on the Nasdaq Global Select Market under the symbol TEM.
(Updated statement in second paragraph.)
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