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soared as a lot as 164% of their market debut and closed at $49.03, up 145.1%, in one of many final conventional preliminary public choices of the yr.
The stock (ticker: MASS) opened at $45.51—greater than double its IPO price of $20—and hit a excessive of $52.83.
The Boston firm raised $130 million after rising the scale of its deal and pricing above its deliberate vary. 908 Units bought 6.5 million shares at $20 every, up from the 6.25 million shares at $15 to $17 every it had anticipated to promote.
Cowen, SVB Leerink, William Blair, and Stifel are the lead underwriters on the deal.
“We are extremely excited,” CEO Kevin Knopp advised Barron’s. “We’ve been working eight years to get to this moment. We’re really looking forward to this new step in the journey. We’re capitalized now to expand.”
908 Units is the final firm that’s at the moment scheduled to make its public fairness markets debut in 2020. No different conventional IPOs are scheduled to start buying and selling subsequent week or the rest of the yr.
Knopp stated he wasn’t positive whether or not 908 was the yr’s final IPO, however the firm rang the closing bell on the Nasdaq right this moment. “There is absolute demand for having technology like ours that has a strong product platform. It feels great,” he stated.
Based in 2012, 908 Units develops hand-held and desktop mass spectrometry, or Mass Spec, units that can be utilized in life sciences analysis, bioprocessing, industrial biotech, forensics, and adjoining markets. The corporate has bought greater than 1,200 hand-held and desktop units to over 300 prospects in 32 international locations. This consists of 18 of the highest 20 pharmaceutical firms.
908 Units has raised about $70 million in funding, together with a $17.5 million Sequence E spherical in 2019. Buyers embrace Northpond Ventures, Sands Capital Ventures, ARCH Ventures, Razor’s Edge Ventures, Saudi Aramco Power Ventures, Schlumberger, Tao Capital Companions, and Casdin Capital.
908 has a variety of consumers together with the Division of Homeland Safety, FEMA, the U.S. Military and companies similar to
(MRK), Knopp stated. The corporate’s MX908, a handheld machine, is used to hint greater than 100 harmful supplies together with fentanyl and artificial opioids, he stated. On the finish of 2019, the corporate launched the Insurgent desktop, which is used for bioprocessing. It has bought 31 Insurgent models at an inventory price of $128,000 every, he stated.
908 is trying to democratize know-how, Knopp stated. “We’re making gold standard technology and bringing it to people who need quick and actionable answers,” he stated.
The corporate isn’t worthwhile. Losses narrowed to $2.6 million for the 9 months ended Sept. 30, in contrast with the prior yr’s lack of $12.9 million, its prospectus stated. Complete income greater than doubled to $21.2 million in that point. As of Sept. 30, the corporate had 39 full-time workers.
Knopp plans to make use of proceeds from the IPO to put money into R&D, to rent in gross sales and advertising, and to develop internationally, he stated. “We would be open to tuck in acquisitions but it could also be a license or [intellectual property],” Knopp stated.
Arch may have the most important stake in 908 Units after the IPO, holding almost 21%, whereas Razor’s Edge will personal 7.5%, the prospectus stated.
Write to Luisa Beltran at [email protected]