Guardant Health, a US-based cancer diagnostics technology developer that counts telecommunications firm SoftBank as its largest shareholder, went public yesterday in an initial public offering sized at approximately $238m.
The company issued 12.5 million shares on the Nasdaq Global Select Market that were priced at $19.00 each, above the IPO’s $15 to $17 range, giving it a market capitalisation of about $1.58bn. Its shares opened at $27.75 yesterday and closed at $32.20.
Guardant has created liquid biopsy-based blood tests that detect advanced cancer with assistance from large datasets and data analytics technology, and which are intended to be cheaper and less invasive than tissue biopsies.
The tests are personalised for each patient based on the molecular profile of their tumours, and the company is using the technology to develop tests for early-stage and recurring cancers. It did not specify how it plans to use the proceeds from the offering.
The IPO came after a total of about $550m of funding for Guardant since 2013, including $360m in a May 2017 round led by SoftBank that included Sequoia Capital, Khosla Ventures, Lightspeed Venture Partners, Temasek, OrbiMed, 8VC and funds and accounts managed by T. Rowe Price.
OrbiMed had previously led the company’s $100m series D round in early 2016, investing alongside Khosla Ventures, Sequoia, Lightspeed, Heritage Group, Pear VC, and 8VC predecessor Formation 8.
SoftBank remains Guardant’s largest shareholder, though its stake was diluted from 39.3% to 33.4% in the offering. The company’s other notable investors are Sequoia (9.3% post-IPO), Khosla Ventures (8.6%) and Lightspeed (4.6%).
Joint book-running managers JP Morgan Securities and BofA Merrill Lynch and co-managers Cowen and Company, Leerink Partners and William Blair & Company have a 30-day option to buy another 1.88 million shares, increasing the size of the IPO to more than $273m.
