Biotech startup NantHealth launched into the market Thursday after its initial public offering, with the stock surging nearly 33 percent.
The California-based company, started by billionaire physician Dr. Patrick Soon-Shiong, opened on the NASDAQ under the symbol "NH." The company offered 6.5 million shares of common stock at $14, with the shares jumping to $21 after the bell before giving up some of those gains. NantHealth granted underwriters a 30-day option to buy up to 975,000 shares of common stock.
"We estimate that the potential global market for clinics, including GPS Cancer, exceeds $50 billion," the company said in a May 24 SEC filling. NantHealth's total net revenue was $58.3 million in 2015, with a net loss was $72.0 million, it said in the filing.
NantHealth chairman and CEO Dr. Patrick Soon-Shiong, and entities affiliated with him, will control roughly 58 percent of the combined voting power of the outstanding common stock, according to the SEC filing.
Soon-Shiong is also part-owner of the Los Angeles Lakers, the second-biggest investor in Tribune Publishing, and CEO of immunotherapy company NantKwest. He will "primarily focus" on NantKwest and other companies operating under parent company NantWorks, the filing said.