DNA Test Maker BillionToOne Raises $314M in Upsized IPO, Shares Fluctuate

BillionToOne, a molecular diagnostics firm specializing in DNA testing, has successfully raised $314 million in an initial public offering (IPO) that exceeded initial expectations. The Menlo Park, California-based company made its debut on the Nasdaq exchange on Friday, offering more than 5.2 million shares of Class A stock at $60 per share.

IPO Performance and Market Reaction

The company's shares, trading under the ticker "BLLN," experienced significant volatility on their first day of trading. After reaching a high of $113.06, the stock price settled at $100.03 by the close of trading, representing a decline of more than 8% from its peak. This fluctuation highlights the market's mixed reaction to BillionToOne's public offering.

J.P. Morgan, Piper Sandler, Jefferies, and William Blair served as joint book-running managers for the offering, with additional support from Stifel, Wells Fargo Securities, and BTIG.

Strategic Focus and Technology

BillionToOne plans to utilize the funds raised from the IPO to scale up its DNA testing operations, with a particular emphasis on noninvasive prenatal screening and cancer detection. The company's technology differentiates itself from traditional prenatal screening tests by focusing on smaller genetic alterations and their implications, rather than larger chromosomal changes.

The firm's flagship product, the UNITY Fetal Risk Screen test, analyzes blood samples for cell-free DNA fragments. This innovative approach enables healthcare providers to assess the risks of recessively inherited conditions such as spinal muscular atrophy and cystic fibrosis without requiring invasive procedures like amniocentesis or blood samples from male partners.

Recent Achievements and Market Position

Earlier this year, BillionToOne reported that its screening test for Rh incompatibility in pregnant patients had delivered over 80,000 results. This achievement has contributed to more efficient use of RhoGAM shots, which have been facing supply shortages.

The successful IPO follows a significant private funding round in June, where the company secured $130 million in series D financing. This earlier investment had elevated BillionToOne to a billion-dollar valuation, setting the stage for its public market debut.