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Key Takeaways
- Tempus AI began trading on the Nasdaq after selling 11.1 million shares in an initial public offering.
- Shares priced at $37 each, at the high end of the company’s target, and opened trading Friday at $40, rising to nearly $44 before fading somewhat.
- Google is among those investing in the medical technology firm.
Shares of healthcare technology firm Tempus AI surged Friday as they began trading on the Nasdaq.
Trading under the ticker symbol “TEM,” Tempus AI shares opened at $40 each, $3 above their initial public offering (IPO) price. They jumped nearly 18% to $43.64 at one point before fading to $38.30 as of 2 p.m. ET, a rise of 3.5%.
The company sold 11.1 million shares in the IPO, and the $37-per-share price was at the high end of its target range of $35 to $37. Tempus said the sale raised $410.7 million.
Google-Backed Tempus Uses AI to Process Medical Data
The company uses AI to analyze medical tests to help doctors better treat their patients. Alphabet’s (GOOGL) Google is among the investors in the firm.
Founder and Chief Executive Officer (CEO) Eric Lefkofsky, who was also the founder of e-commerce marketplace Groupon (GRPN), told CNBC that while Tempus is still a money-losing business, it expects “sometime in 2025 to turn the corner and be both cash flow positive and adjusted EBITDA positive.”