A security enjoy makes a second appearance on the open market.
SailPoint ( ) is poised to start trading at the Nasdaq on Thursday. The company priced its initial public offering ( IPO ) at the top end of its targeted range of$ 21 to$ 23, raising$ 1.38 billion in proceeds.
The company’s pricing away of its IPO stood at$ 12.6 billion. Its closest competitor, Okta ( ), is valued at$ 16.8 billion.
” The business appears to be savvy right now for what we refer to as scale-and-profitability development.” If you’ve built a pretty large business, you’re able to grow that business and do so successfully, that’s kind of the special combo of today. And we were that page. I think]investors on the roadshow ] found that interesting”, SailPoint founder and CEO Mark McClain told me on (video above ).
Public markets are not a new experience for the identification management technology company.
Thoma Bravo took SailPoint public on Nov. 18, 2017, around the same day as quasi-competitor Okta debuted.
On its first day of trading, the stock finished up 8.3 % at$ 13. The company had set the price for its IPO at$ 12 per share at the time.
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At the time, SailPoint touted sales of$ 118.3 million and growth of 34 % in the nine months before its IPO. It had a$ 13 million net loss.
Thoma Bravo took the company private in 2022 for$ 6.9 billion or$ 65.25 a share.
Now, Sailpoint is a more mature business operationally and financially — though it’s producing deficits despite a move to a software-as-a-service design.
For the year ended Jan. 31, 2025, the company estimated in its prospectus it would earn$ 875 million to$ 877 million in annual recurring revenue. That would be up about 41 % year over year.
SailPoint didn’t share assistance for its fiscal week’s bottom line.
Through the nine months ended Oct. 31, 2024, SailPoint’s net loss totaled$ 235.8 million, better than the$ 308 million loss a year earlier. According to McClain, the business is profitable on a non-GAAP schedule.
Now that SailPoint is publicly traded, it will be regarded as a managed business. Thoma Bravo is expected to possess 88 % of SailPoint post-IPO, and it will include ultimate say over board-level selections. It will also be ready to select people to SailPoint’s table.
SailPoint is the first significant check of the tech IPO market in 2025, which is anticipated to observe well-known names like Stripe possible debut as businesses capitalize on a more welcoming regulatory environment under President Trump.
Renaissance Macro expects a “banner” time for IPOs this year, with an estimated size range of 155 to 195 companies coming to market. They could collectively raise$ 40 billion to$ 55 billion in funding.
” There’s usually a feeling that we’re going to move to a less regulatory-oriented management. Now, I don’t think it’s going to all go away, of course, but I think the idea that business will be a little freer to manage without as much focus from the authorities, that perhaps sets up a better backdrop”, McClain said.
Last season saw some progress in IPOs, yet.
According to EY, the number of IPOs increased by 38 % and the proceeds increased by 48 %. The US exchanges ‘ 2024 IPO aftermarket performance was strong, with average gains of 30 % for deals worth$ 50 million or more.
In total, 176 US IPOs raised$ 33 billion in 2024.
is Yahoo Finance’s Executive Editor. Following Sozzi on X , , and Linked In. Tips on reports? Email patrick. sozzi@yahoofinance .com.