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Four years after its IPO attempt, Grail will list on the Nasdaq in June via direct spin-off to Illumina shareholders

June 4, 2024

Illumina (Nasdaq: ILMN) announced on Monday that it plans to spin off cancer detection subsidiary GRAIL, which is expected to trade on the Nasdaq under the ticker GRAL following a share distribution to Illumina shareholders.  

Illumina will distribute 85.5% of GRAIL's stock to its shareholders via dividend, and retain a 14.5% stake. Illumina shareholders will receive one share of GRAIL common stock for every six shares of Illumina held at the close of business on June 13, 2024, the record date for the distribution. Shares are then expected to trade on a "when-issued" basis under the symbol GRAL WI until the distribution date on Monday, June 24, 2024. On the following day, June 25, shares of GRAIL are expected to begin trading on a "regular way" basis on the Nasdaq. 

GRAIL was originally formed within Illumina in 2015, spun out in 2016, and filed for a US IPO in September 2020, before it was re-acquired later that month by Illumina in a deal that later valued it at about $8 billion in cash and stock. However, the transaction was opposed by both the European Commission and the US FTC, and Illumina was fined and ultimately ordered to unwind the acquisition. Illumina's stock has traded down about 27% year-to-date, and is off 52% in the past year.

According to its latest 8-k filing, GRAIL generated revenue of $93 million in 2023 (+68% y/y) and an operating loss of $1.5 billion, or a loss of $797 million excluding goodwill impairment. During the 1Q24, revenue was $27 million (+36% y/y) with an operating loss of $227 million.

Another cancer diagnostics company, Tempus AI (TEM), recently filed for a US IPO.

Note: Because there is no underwritten offering and instead GRAIL is listing on the Nasdaq via direct distribution to Illumina shareholders, the listing is not included in Renaissance Capital's 2024 IPO stats.