Invitae Corporation, the US-based genetic testing technology provider backed by diagnostic testing company Genomic Health, set the range for its initial public offering yesterday between $13 and $15 per share.
The company plans to issue 5.35 million shares on the New York Stock Exchange, which will net it approximately $80.3m if it floats at the top of its range.
Spun out from Genomic in 2012, Invitae is developing a system that aggregates most of the world’s genetic tests into a single process it believes can be quicker, cheaper and of a higher quality than most of the single gene tests currently available.
Between $24m and $28m of the proceeds will be put into research and development, including the development of software for Invitae’s analysis pipeline and clinical report optimisation platform. A further $23m to $27m will support sales and marketing, with up to $6m reserved for capital expenditure.
Genomic Health holds a 9% stake in Invitae that will be diluted to 7.4% through the offering. Other notable shareholders include Baker Brothers Life Sciences, which will retain a 16.9% stake post-IPO, BlackRock (14%) and Thomas, McNerney & Partners (12.5%).
Some of Invitae’s existing shareholders, which also include Broe Group, Decheng Capital, Deerfield Management, OrbiMed, Perceptive Advisors, Rock Springs Capital, Wellington Management, Casdin Capital, Genesys Capital and Redmile Group, plan to aggregately buy $25m of stock in the offering.
Underwriters J.P. Morgan Securities, Cowen and Company and Leerink Partners will have the option to buy another 800,000 shares within 30 days of Invitae’s flotation, which could increase the IPO’s size to about $92.3m.