Nant Health Seeks $82 Million in IPO
May 24 2016 - 10:30AM
Dow Jones News
Nant Health LLC, the biomolecular medicine company run by a Los
Angeles billionaire entrepreneur, said Tuesday it sees its stock
pricing between $12.50 and $15.50 a share in its coming initial
public offering.
Patrick Soon-Shiong, chairman and chief executive of Nant
Health, is a biotech investor, physician and scientist. He is
widely known as one of the richest people in Los Angeles, thanks to
his innovations in the health-care sector, from pioneering
treatments for multiple forms of cancer to technological
advancements in artificial intelligence.
He sold two biotech startups in 2008 and 2010 that he had
launched, together worth roughly $8 billion. On Monday, he took a
13% stake in Tribune Publishing Co. for $70.5 million, becoming an
ally to the newspaper owner as it fights against an unsolicited
takeover bid from Gannett Co.
In a regulatory filing Tuesday, Nant Health said it plans to
sell 6.5 million shares, plus up to 975,000 shares in a so-called
overallotment option, which gives underwriters the opportunity to
sell additional shares under certain circumstances. The company
could be worth as much as $1.83 billion after the offering.
Nant Health said it expects to earn $81.6 million from the sale,
assuming that the stock prices at the midpoint of its range and
after deductions for underwriting discounts and commissions, as
well as offering expenses. If the underwriters exercise their
option to purchase additional shares in full, the company estimates
proceeds of $94.3 million.
Nant Health is a subsidiary of Dr. Soon-Shiong's NantWorks, a
company devoted to applying advanced technology into different
industries such as science, commerce and communication.
The company said Dr. Soon-Shiong is estimated to control roughly
58% of the voting power in Nant Health after the offering. Some of
Nant's existing investors, including entities affiliated with Dr.
Soon-Shiong and biopharma company Celgene Corp., indicated an
interest in purchasing up $70 million worth of shares in this
offering.
The company has applied to list on the Nasdaq exchange under the
ticker symbol NH.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 24, 2016 10:15 ET (14:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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