By Arasu Kannagi Basil
(Reuters) -Most cancers diagnostic agency Caris Life Sciences mentioned on Monday it’s focusing on a valuation of as much as $5.3 billion in its U.S. preliminary public providing, as the marketplace for new listings rebounds.
Irving, Texas-based Caris, backed by funding agency Sixth Avenue, is searching for as much as $423.5 million by providing 23.5 million shares priced between $16 and $18 apiece.
The IPO market is heating up as high-profile corporations transfer forward with their inventory market listings in a calmer interval after tariff-related volatility stifled deal exercise earlier this yr.
Caris is a synthetic intelligence-based precision medication agency that helps diagnose most cancers by means of its tumor profiling and blood-based most cancers diagnostics.
Based in 2008 by CEO David Halbert, Caris generates income primarily from its tissue-based molecular profiling, which helps choose the suitable most cancers remedy.
The corporate, which competes with Guardant Well being and Grail, noticed its income leap 35% to $412.3 million in 2024.
It has run greater than 6.5 million checks on 849,000 instances and works with over 100 biopharma companions, together with Moderna and AbbVie.
Caris raised $830 million at a $7.83 billion valuation in a Sixth Avenue-led 2021 funding spherical. Additionally it is backed by J.H. Whitney, one of many oldest U.S. non-public fairness companies.
The valuation goal locations Caris’ estimated price-to-sales ratio at about 13, positioning it on the excessive finish of its peer group, mentioned IPOX analysis analyst Lukas Muehlbauer.
“Whereas the corporate’s financials present constructive momentum, Caris should finally show that its AI interprets into superior scientific outcomes in a extremely aggressive panorama,” Muehlbauer mentioned.
Funding supervisor Neuberger Berman might purchase as much as $75 million of shares within the providing. The flotation comes a yr after SoftBank-backed precision medication agency Tempus AI went public. The inventory has gained 67.8% as of Friday’s shut.
BofA Securities, J.P. Morgan, Goldman Sachs, and Citigroup are the lead underwriters. Caris will commerce on the Nasdaq beneath the image “CAI.”
(Reporting by Arasu Kannagi Basil in Bengaluru; Modifying by Leroy Leo and Maju Samuel)
