Molecular Diagnosis Firm BillionToOne Raises $273 Million in IPO

(Bloomberg) — BillionToOne Inc., a molecular diagnostics company, raised $273.1 million in an upsized US initial public offering, during a US government shutdown that has complicated the listing process.

The Menlo Park, California-based company sold 4.55 million shares for $60 each, according to a statement Wednesday confirming an earlier Bloomberg News report. BillionToOne had marketed 3.85 million shares in a range of $49 to $55 each, according to its filings with the US Securities and Exchange Commission.

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The share price gives the company a market value of more than $2.6 billion, based on the shares outstanding in its filings. The co-founders, Chief Executive Officer Oguzhan Atay and Chief Technology Officer David Tsao, are expected to have 64% of the voting power after the listing.

The government shutdown, which is now the longest in US history, has paused the SEC’s usual process for approving IPO candidates’ paperwork. For those using a workaround to have their registrations declared effective automatically, the regulator has issued guidance that allows them to include a price range in their filings rather than a fixed price. The companies still have to wait 20 days for their registration to become effective, exposing them to stock market volatility and other risks.

BillionToOne had net loss of $4.2 million on revenue of $125.5 million for the six months ended June 30, compared with net loss of $15.2 million on revenue of $69.1 million a year earlier, according to the filings.

The precision diagnostics company’s Unity Complete is a non-invasive prenatal screen that assess fetal risk from a blood draw. Its pair of NorthStar liquid biopsy tests can detect mutations that are present in tumors, according to its website.

BillionToOne’s investors include Hummingbird Ventures, which is expected to have 19.9% of the Class A shares after the IPO, the filings show. Neotribe Ventures will have 11% of the Class A stock, and Libertus Capital is set to have 9%.

The offering is being led by JPMorgan Chase & Co., Piper Sandler Cos., Jefferies Financial Group Inc. and William Blair & Co. The company expects for its shares to trade Thursday on the Nasdaq Global Select Market under the symbol BLLN.

–With assistance from Bailey Lipschultz.