Skip to main content
Premium Trial:

Request an Annual Quote

Complete Genomics Raises IPO Target to $96.6M

By a GenomeWeb staff reporter

NEW YORK (GenomeWeb News) – Complete Genomics today raised the total offering for its proposed initial public offering to as much as $96.6 million from its original goal of $86.3 million.

In an amended S-1 form filed with the US Securities and Exchange Commission, the Mountain View, Calif., sequencing services firm also reported preliminary earnings for the quarter ended Sept. 30.

For its IPO, Complete Genomics plans to offer 6 million shares at a share price between $12 and $14.

The company added that the underwriters for its IPO have the option to purchase up to an additional 900,000 shares at the public offering price. Investment banks UBS and Jefferies are acting as joint book-running managers. Baird and Cowen and Company are co-managers. After the offering, the company anticipates to have almost 26 million shares of its common stock outstanding.

Complete Genomics initially filed for the IPO in late July.

In determining its share price and its new maximum aggregate offering price, the company said that it considered a number of factors including "our demonstrated progress in obtaining and fulfilling genome orders and shipping genomic data during the third quarter, as well as the apparent increase in demand for our service, as suggested by the increase in order backlog at September 30, 2010." As of that date, Complete Genomics had an order backlog of 800 genomes.

Life Technologies' recent acquisition of Ion Torrent, which could cost as much as $725 million if certain criteria are met, also played into its share price evaluation, the company said in its filing, as did Pacific Biosciences' recent increase in its IPO target to $244.4 million from an initial target of $200 million.

Complete Genomics said it anticipates net proceeds of $69.3 million from the offering, or $80.2 million if the underwriters exercise their over-allotment option in full, based on a share price of $13, the midpoint of the offering's price range. As stated in an earlier amendment to its preliminary prospectus, the company intends to use between $20 million and $25 million of its net proceeds to expand the sequencing and computing capacity in its Mountain View and Santa Clara, Calif., facilities.

Another $15 million to $25 million will be directed at further development of its sequencing technology and services, and in a related note, the company said that during August and September, it had reconfigured its sequencers to increase throughput.

Between $10 million and $15 million will go toward sales and marketing activities, while the remaining proceeds will be used for working capital and other general corporate purposes.

The company also reported preliminary earnings results for its most recently ended quarter. For the three months ended Sept. 30, revenues are anticipated to fall between $3.9 million and $4.3 million, with sales to approximately 20 customers. The company estimates cash and cash equivalents of about $10.5 million as of Sept. 30, and the order backlog for which the company expects sales during the next year is about $9 million.

The Scan

Not Immediately Told

The US National Institutes of Health tells lawmakers that one of its grantees did not immediately report that it had developed a more infectious coronavirus, Science says.

Seems Effective in Kids

The Associated Press reports that the Pfizer-BioNTech SARS-CoV-2 vaccine for children appears to be highly effective at preventing symptomatic disease.

Intelligence Warning on Bioeconomy Threats

US intelligence warns over China's focus on technologies and data related to the bioeconomy, the New York Times reports.

PLOS Papers on Campylobacteriosis Sources, Inherited Retinal Dystrophies, Liver Cancer Prognosis

In PLOS this week: approach to uncover source of Campylobacteriosis, genetic risk factors for inherited retinal dystrophies, and more.