Shares of 10X Genomics surged more than 35% on its first day of trading to close at $52.75, well above its $39 initial price offering starting point.
Shares of Bay Area-based 10X Genomics surged more than 35% on its first day of trading to close at $52.75, well above its $39 initial price offering starting point.
It was a good day of trading for the Pleasanton, Calif.-based gene sequencing company. Share prices, which are sold on the Nasdaq under the ticker symbol “TXG” had climbed as much as 49% during trading Thursday.
Serge Saxonov, co-founder and chief executive officer of 10x Genomics, told BioSpace that the overwhelming successful IPO debut for the company is a validation of the company’s “execution and scale over the years.”
“We’re in the ‘Century of Biology,’ a time period where we may very well find cures for cancer, Alzheimer’s and other diseases. Our public offering allows us to continue the journey we’ve started to master biology and advance human health,” Saxonov told BioSpace.
10x Genomics is a leader in single-cell and emerging areas of genomic analysis, which provides greater context in understanding new biology and diseases, and potentially ways to treat them. According to analysts, the genomics market is seeing exponential growth and is estimated to grow to approximately $24 billion by 2022. And 10x, which is focused on the research and discovery markets, anticipates being in a secure position to be among the top companies providing genetic sequencing to help researchers understand diseases like cancer, Alzheimer’s and others.
In its debut, 10x offered 10 million shares of Class A common stock, as well as an additional 1.5 million shares available for underwriters to acquire at the IPO price of $39. The offering is expected to close on Sept. 16, the company said.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Bank of America/ Merrill Lynch are acting as lead joint book-running managers for the offering. Cowen is acting as lead manager for the offering.
10x has had a successful year leading up to its IPO. In January, the company secured $35 million in a Series D financing round to bring its total funding at the time to $243 million. That financing round followed two 2018 acquisitions that boosted the company’s growth. The company snapped up Epinomics and Spatial Transcriptomics, both leaders in the fields of epigenetics and spatial genomics. The two deals boosted 10x’s ability to develop products that provide invaluable insights for unlocking fundamental biology, understanding disease and advancing human health, the company said.
In addition to its M&A activity, 10x Genomics also expanded its physical footprint with a research facility in Sweden that will help the company develop new technologies. Also last fall, 10x acquired a larger space in Pleasanton to relocate its facilities this year. The new facility provides more than three times the space of its previous site.
