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Complete Genomics Nets $47M in IPO at $9 per Share

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This article was originally published Nov. 11.

Complete Genomics this week raised total proceeds of $54 million in its initial public offering, selling 6 million shares of common stock at $9 per share.

The IPO share price was well below its most recent target of $12 to $14 per share (IS 10/26/2010).

The company's stock began trading on Nov. 11 on the Nasdaq Global Market under the symbol "GNOM."

Complete Genomics said in a filing with the US Securities and Exchange Commission that net proceeds from the offering are approximately $47 million after deducting underwriting discounts and commissions and offering expenses.

The company has granted its underwriters a 30-day option to purchase up to 900,000 additional shares at $9 per share to cover over-allotments. If this option is exercised in full, the company's net proceeds would be approximately $54.5 million.

UBS Investment Bank and Jefferies & Company served as joint book-running managers for the offering, with Baird and Cowen and Company acting as co-managers.

The company has 25,809,078 shares outstanding after the IPO, or 26,709,078 shares if the underwriters exercise their over-allotment option in full.

Complete Genomics said in its SEC filing that it intends to use around $20 million of the net proceeds of the offering to expand the sequencing and computing capacity in its Mountain View, Calif., and Santa Clara, Calif., facilities; $15 million to continue development of its sequencing technology and services; and $10 million for sales and marketing activities.

The company said it plans to use the remainder of the net proceeds for working capital and other general corporate purposes.

Complete's IPO comes two weeks after that of Pacific Biosciences, which raised $200 million at $16 per share on Oct. 27 (IS 11/2/2010). Since then, PacBio's stock price has fallen nearly 20 percent to $12.83 per share.

Complete Genomics filed for its IPO in August. At the time, the company said it expected to raise up to $86.25 million in the offering (IS 8/3/2010).

The company later raised this maximum aggregate target to $96.6 million, with projected net proceeds of $69.3 million — slightly more than 30 percent above the net proceeds from last week's offering, and 20 percent above the net proceeds if all over-allotments are exercised in full.

As of mid-day Nov. 16, Complete Genomics traded at $6.90 per share.

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