NEW YORK Shares of Pacific Biosciences of California Inc (PACB.O), which designs machines to speed up DNA sequencing in labs, closed 2.8 percent above their initial public offering price on Wednesday.
The shares opened at $16.50 and rose as high as $16.88 before closing at $16.44 on Nasdaq. The company on Tuesday sold 12.5 million shares for $16 each, raising about $200 million. It had planned to sell shares for $15 to $17 each.
Menlo Park, California-based Pacific Biosciences sells equipment used for clinical, agricultural and drug research, food safety, biofuels and biosecurity applications.
The company has never been profitable and all of its revenue to date has come from government grants. Pacific Biosciences posted a net loss of $63.0 million on revenue of $1.2 million for the six months ended June 30. [ID:nSGE67F0JN]
Pacific Biosciences said it had a backlog of orders worth $15 million as of June 30. The U.S. Department of Energy Joint Genome Institute and Monsanto Co (MON.N) are among those that have ordered Pacific Biosciences equipment.
Underwriters were led by JPMorgan, Morgan Stanley, Deutsche Bank Securities and Piper Jaffray. The shares are trading on Nasdaq under the symbol "PACB."
(Reporting by Clare Baldwin; Additional reporting by Leah Schnurr; Editing by Gerald E. McCormick and Richard Chang)