Cancer diagnostic firm Caris Life Sciences spiked 35% on its first day of trading.

Caris Life Sciences Inc., a health-care company that uses technology to help diagnose and treat cancer, raised $494 million in a US initial public offering that priced above the top of its marketed range.

The Sixth Street Partners-backed company sold 23.5 million shares at $21 each, according to a statement Tuesday. The medical technology firm had offered shares for $19 to $20 each, above a previous proposed range of $16 to $18, an earlier filing showed.

At the IPO price, the Irving, Texas-based firm has a market value of $5.9 billion based on the outstanding shares listed in the filing.

Health-care and biotechnology IPOs, typically a staple of the US calendar, have been lacking in 2025. First-time share sales in the sector on US exchanges have raised $1.5 billion in the year to date, down 55% from the same period in 2024, according to data compiled by Bloomberg.

Affiliates of Neuberger Berman Investment Advisers indicated they would be interested in buying as much as $75 million of Caris’ offering at the IPO price, the filing shows.

Founded in 2008, Caris uses artificial intelligence and machine learning to analyze oncology data to diagnose and monitor cancer treatments, the filing shows. The company has run more than 6.5 million tests on over 849,000 cases.

Its product portfolio consists of MI Profile, a tissue-based molecular profiling solution, which has generated the majority of Caris’ revenue, and Caris Assure, a blood-based molecular profiling solution launched in the first quarter of 2024. The health-tech firm also runs a drug discovery business where it uses its profiling solutions and genomic datasets to identify potential drug targets and develop therapeutics.

Caris had a net loss of $127 million on revenue of $120.9 million for the first three months of 2025, compared with a net loss of $134.1 million on revenue of $80.7 million in the same period a year earlier, according to the filing.

Founder and Chairman David Dean Halbert is expected to beneficially own 41.7% of the company after the offering, the filing shows. Affiliates of Sixth Street and private equity firm JH Whitney Capital Partners are set to have 9.8% and 6.8% ownership respectively.

The offering is being led by Bank of America Corp., JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. The shares traded on the Nasdaq Global Select Market Wednesday under the symbol CAI.