Fluidigm attempts an IPO

Nanotech company Fluidigm is now going public. The South San Francisco based company plans to begin offering 5,300,000 shares at $14 to $16 on Thursday, according to the company's SEC filings. If all goes according to plan, the IPO could raise as much as $85 million.

Fluidigm develops, manufactures and markets microfluidics products designed to make laboratory testing more efficient and precise. If the IPO goes as expected, the company plans to use the proceeds to expand their facilities and manufacturing operations. According to a report in the San Francisco Business Journal, Fluidigm's lease at its manufacturing facility in Singapore is up in October 2011 and the company will need to expand or move elsewhere in the city. The company's SEC filing also indicated that in addition to funding development and an expansion of their sales force, they may also use the revenue to acquire other businesses, products or technologies.

Fluidigm may have a tough time making a sell, for a number of reasons. Although 86 venture-backed companies went public last year, only 6 have done so this year, according to the National Venture Capital Association. Fluidigm will be only the second venture-backed deal to go before investors this quarter. Smaller biotech companies and start-ups have especially been hit with losses over the past few years, and Fluidigm is no different. The company reported a net loss of $25.5 million last year with only $7.3 million in revenue, and $23.6 million net loss on 6.4 million in revenue in 2006, according to Fluidigm's SEC filings. It's likely the company will see similar losses, if not worse, this year.

Given all of this, and the state of the economy in general, the odds seem stacked against them. But the company is backed by a number of blue chip investors, including Lehman Brothers Healthcare Fund, Euclid SR Partners, Versant Ventures and Alloy Ventures. The offering will be made through Morgan Stanley, UBS Investment Bank, Leerink Swann and Pacific Growth Equities. Fluidigm was a 2003 Fierce 13 company.

- read the New York Times article

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