Tech and AISailPoint’s dull debut did little to loosen the stuck...

SailPoint’s dull debut did little to loosen the stuck IPO window, expert says

-


SailPoint’s IPO on Thursday was a disappointment for anyone hoping it would indicate that tech IPOs are hot again.

The first day’s trading ended below the $23 initial price. The stock fared a tad better Friday, closing at over $24. But that’s nothing close to the big bang companies and VCs hope for.

For instance, ServiceTitan, the last tech IPO in December, was wildly successful. Share price popped from $71 to as high as $105 on Day 1, and is still currently trading at around $100. 

Back-to-back successes would have served as a signal that the painfully stuck-closed IPO window is opening at last.

Instead, retail investors are exercising discernment, not wild enthusiasm.

“I’m hesitant to draw too many conclusions on the appetite for tech or software IPOs from it,” IPO expert Nick Einhorn, VP of research for Renaissance Capital, tells TechCrunch. “While the company has good growth, it may not have stood out enough in the cybersecurity landscape to be awarded a premium sales multiple.”

Renaissance Capital is an IPO market research firm that also offers an IPO exchange-traded fund (ETF).

SailPoint was a bit of an odd IPO because it wasn’t a startup. It was previously a public company until PE firm Thoma Bravo took it private in 2022, valuing it at $6.9 billion at the time. The private equity giant is still the majority owner.

This was a leveraged-buyout company as an IPO, not a classic venture backed startup. VC-backed startups going public often have the kind of growth potential that excites investors, as was the case with ServiceTitan.

On the positive side for SailPoint, the company priced its initial 60 million shares at $23, above its previously announced range of $19 and $21. SailPoint raked in over $1.3 billion, which it will use for operations and to pay off about $1.5 billion of debt it showed on its books, according to a regulatory filing. It’s also at about a $13 billion market cap, a boost from what Thoma Bravo paid.

“In no way did we consider this a disappointing IPO. We went from mid-point of $20 to a close of $25 on Day 2. In our minds, it’s a very successful IPO,” CEO Mark McClain told TechCrunch.

Still, the upshot for those looking for a sign that IPOs could be flowing again soon (especially employees of late-stage startups looking at their paper-money stock and stock options): the signals remain murky.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Bank Of Korea Takes Cautious Stance On Bitcoin As Reserve

The Bank of Korea has stated that it is approaching the idea of including Bitcoin in its foreign...

President Trump’s World Liberty Financial Purchases More Crypto As Total Losses Hits $118,000,000: On-Chain Data

The crypto project backed by US President Donald Trump has acquired another multi-million-dollar batch of digital assets, on-chain...

BIGSPIN77 Situs Terbaik Untuk Bermain Slot Gacor Hari ini 2025

BIGSPIN77 adalah pilihan terbaik bagi penggemar slot gacor. Situs ini sangat memperhatikan keamanan dan transparansi. Ini membuat BIGSPIN77...

8 Best Down Comforters (2025), Tested and Reviewed

More Comforters We've TestedIf you want a warm blanket but you don’t want traditional down, consider a down...

Advertisement

CJMining: Bitcoin Cloud Hosting For Optimized Blockchain Computing

🚀 Enhance Bitcoin Network Efficiency with CJMining’s Cloud Hosting SolutionsAs Bitcoin network computing demands grow, cloud-based solutions have...

Pi Network (PI) Sees 10% Daily Drop, Bitcoin (BTC) Volatile at $84K (Market Watch)

The relatively calm weekend was disrupted yesterday with substantial volatility around the $84,000 mark after some large short...

Must read

You might also likeRELATED
Recommended to you