(Reuters) – Shares of SoftBank Group-backed Tempus AI rose 8.1% in their debut on the Nasdaq on Friday, giving the artificial intelligence-based genetic testing company a valuation of $6.6 billion.
The stock opened at $40 apiece, compared with the initial public offering (IPO) price of $37.
The company is among the several AI-focused firms that have garnered investors’ interest, thanks to the popularity of OpenAI’s viral chatbot ChatGPT.
The strong debut bodes well for other companies looking to go public, as the U.S. capital market rebounds in 2024 after a dry spell that lasted nearly two years.
Other high-profile listings this year include Chinese EV firm Zeekr and social media firm Reddit, which fared well in their debuts too.
Chicago, Illinois-based Tempus raised $410.7 million in the IPO, after it priced its shares at the higher range of its target of $35 to $37.
The offering was underwritten by a cartel of top Wall Street names such as Morgan Stanley, J.P. Morgan and Bank of America Securities, among others.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shilpi Majumdar)
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