Tempus Announces Pricing of Initial Public Offering
Tempus AI announced the pricing of its initial public offering (IPO) of 11,100,000 shares of Class A common stock at $37.00 per share.
The gross proceeds are expected to be $410.7 million, before deducting underwriting discounts, commissions, and other expenses.
The underwriters have a 30-day option to purchase an additional 1,665,000 shares.
The shares will trade on the Nasdaq Global Select Market under the ticker symbol "TEM" starting June 14, 2024, with the offering expected to close on June 17, 2024.
Morgan Stanley, J.P. Morgan, and Allen & Company are the lead book-running managers, with BofA Securities and TD Cowen also participating.
Stifel, William Blair, Loop Capital Markets, and Needham & Company are co-managers.
The SEC declared the registration statement effective on June 13, 2024.
- The IPO is expected to generate gross proceeds of $410.7 million.
- Shares will trade on the Nasdaq Global Select Market, providing high visibility.
- Strong financial backing from leading underwriters like Morgan Stanley and J.P. Morgan.
- Option for underwriters to purchase additional 1,665,000 shares within 30 days.
- The gross proceeds figure does not account for underwriting discounts, commissions, and other expenses.
- The offering is subject to customary closing conditions, which could delay or prevent the closing.
- Potential dilution for existing shareholders due to the additional shares.
Insights
The initial public offering (IPO) of Tempus AI, Inc. presents a significant opportunity for both the company and potential investors. By pricing its shares at $37.00 per share and offering 11,100,000 shares, Tempus aims to raise gross proceeds of approximately
Investors should also be mindful of the underwriters' 30-day option to purchase an additional 1,665,000 shares, which could affect the stock's supply and price in the short term. This option adds another layer of potential volatility right after the IPO. The choice of major underwriters like Morgan Stanley and J.P. Morgan indicates strong institutional backing, likely providing some confidence to retail investors regarding the IPO's success.
From a financial standpoint, the success of this IPO can signal strong investor confidence in Tempus AI's business model and market potential. If the offering is oversubscribed, it could lead to a positive reception in the market, driving the stock price upward in the initial days of trading. Conversely, if the company fails to meet investor expectations post-IPO, it could result in a rapid decline in stock price, as often seen with high-profile IPOs that do not immediately deliver.
Retail investors should also consider the broader market conditions and sentiment toward tech and AI companies, as these factors will heavily influence the stock's performance post-IPO.
The IPO of Tempus AI, Inc. is poised to attract considerable attention in the market, particularly due to its focus on the AI sector, which has been receiving heightened interest and investment. The AI industry is currently experiencing rapid growth, driven by advancements in machine learning, data analytics and automation, which positions Tempus AI to capitalize on these trends.
Investors should note that the company's entry into the public market comes at a time when there is increased scrutiny on tech IPOs, especially with the performance of recent entrants in mind. The fact that Tempus AI has secured a listing on the Nasdaq Global Select Market, typically reserved for companies meeting stringent financial and liquidity standards, can be seen as a vote of confidence in its operational and financial health.
It is also essential to consider how the funds raised will be allocated. Effective use of the proceeds can significantly impact the company’s ability to innovate and scale. Moreover, the involvement of multiple well-known underwriters and co-managers could facilitate a smoother trading debut, offering some stability in what can often be a volatile initial trading period.
Considering these factors, retail investors should keep an eye on Tempus AI's strategic announcements post-IPO for indications of growth prospects and any competitive advantages the company plans to leverage.
The shares are expected to begin trading on the Nasdaq Global Select Market on June 14, 2024, under the ticker symbol “TEM”. The offering is expected to close on June 17, 2024, subject to the satisfaction of customary closing conditions.
Morgan Stanley, J.P. Morgan, and Allen & Company LLC are acting as lead book-running managers for the proposed offering. BofA Securities and TD Cowen are acting as additional book-running managers; and Stifel, William Blair, Loop Capital Markets, and Needham & Company are acting as co-managers for the proposed offering.
A registration statement related to these securities was declared effective by the Securities and Exchange Commission (the “SEC”) on June 13, 2024 and can be accessed through the SEC’s website at www.sec.gov. The offering is being made only by means of a prospectus forming part of such registration statement. A copy of the final prospectus relating to this offering may be obtained, when available, from: Morgan Stanley & Co. LLC, Prospectus Department, 180 Varick Street,
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Tempus
Tempus is a technology company advancing precision medicine through the practical application of artificial intelligence in healthcare. With one of the world’s largest libraries of multimodal data, and an operating system to make that data accessible and useful, Tempus provides AI-enabled precision medicine solutions to physicians to deliver personalized patient care and in parallel facilitates discovery, development and delivery of optimal therapeutics. The goal is for each patient to benefit from the treatment of others who came before by providing physicians with tools that learn as the company gathers more data.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613404159/en/
Tempus Communications
Erin Carron
media@tempus.com
Tempus Investor Relations
Elizabeth Krutoholow
Elizabeth.krutoholow@tempus.com
H/Advisors Abernathy
Dan Scorpio
Dan.scorpio@h-advisors.global
Source: Tempus AI, Inc.
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