10x Genomics Plans Up-to-$362M IPO, Potentially Triple Its Original Offering

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10x Genomics, a developer of single-cell analysis systems such as the Chromium Next GEM single-cell analysis solution (pictured), has more than doubled the size of its planned initial public offering, disclosing plans for an up-to-$362.25 million IPO that is estimated to generate net proceeds of approximately $271 million to $312.4 million depending how many shares are sold at the $33-a-share midpoint of the pricing range. [10x Genomics].

10x Genomics today filed an amended up-to-$362.25 million proposed initial public offering (IPO) that would be possibly triple, but no less than double, the size of the offering revealed last month by the developer of single-cell analysis tech platforms.

The size of the IPO will ultimately depend on how many shares the single-cell analysis platform developer sells, and at what price. In an S-1/A amended registration statement, 10x Genomics set a price range for the nine million shares of common stock it intends to sell on the NASDAQ Global Select Market under the symbol TXG, saying the shares would be sold at between $31 and $35 a share.

At the midpoint of that range, $33 a share, 10x Genomics estimated that its IPO would raise net proceeds of approximately $271 million—but could rise to approximately $312.4 million if the underwriters were to exercise in full their option to purchase additional shares.

10x Genomics has granted a 30-day option to the IPO underwriters to purchase up to 1.35 million additional shares of common stock at the public offering price, less underwriting discounts and commissions on the same terms.

At the full $35 a share, net proceeds would increase by $16.8 million assuming an offering of nine million shares and no exercise by the underwriters of their option to purchase additional shares, based on a rate of $8.4 million per $1 dollar increase in the asking price disclosed in the latest filing.

If the underwriters’ stock purchase option is exercised in full, 10x Genomics stands to raise an additional $35.31 million in net proceeds, based on the rate of $30.7 million per additional one million shares disclosed in the filing.

However, at the low price of $31 per share, net proceeds would shrink by $16.8 million, to $254.2 million, for a nine million-share offering. The company had not specified its proposed share price range or net proceeds estimates in its initial S-1 registration statement, filed August 19.

“Capitalization and financial flexibility”

10x Genomics’ amended IPO registration statement did not break down how much of the net proceeds would go toward several priorities the company identified in the filing.

“The principal purposes of this offering are to increase our capitalization and financial flexibility, create a public market for our Class A common stock, and enable access to the public equity markets for us and our stockholders,” 10x Genomics stated.

10x Genomics said in its initial filing that it intended to use the net proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures: “Additionally, we may use a portion of the net proceeds we receive from this offering to acquire businesses, products or technologies. However, we do not have agreements or commitments for any material acquisitions at this time.”

Headquartered in Pleasanton, CA, 10x Genomics was one of six up-and-comers recognized in March by GEN sister publication Clinical OMICs as Five-Year Super Successes in Genomics and Precision Medicine. The company develops integrated solutions for analyzing biological systems at previously inaccessible resolution and scale—including instruments, consumables, and software.

10x Genomics markets the Chromium platform designed to enable high-throughput analysis of individual biological components, such as up to millions of single cells. Later this year, the company plans to launch its recently announced Visium Spatial Gene Expression Solution, designed to allow for investigation of spatially resolved whole transcriptome mRNA expression, while capturing histological information in the same tissue section.

The company has also developed molecular assays for Chromium and Visium that are intended to provide sensitive and robust biochemistries that convert minute amounts of biological analytes into detectable signals, as well as software for both platforms.

As of June 30, 10x Genomics said, there were 8,095,382 shares of the company’s Class A common stock outstanding, held by 170 stockholders of record; and 75,754,278 shares of Class B common stock outstanding, held by 62 stockholders of record.

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