Sailpoint’s IPO on Thursday was a disappointment for anyone who hopes it would indicate that technical listed IPOs are hot again.
The trade of the first day ended under the initial prize of $ 23. The stock did a bit better Friday and closed more than $ 24. But that is nothing close to the Big Bang companies and VCS hope.
ServiceTitan, the last technical IPO in December, was, for example, enormously successful. The share price fell from $ 71 to as high as $ 105 on day 1 and is currently still acting at around $ 100.
Back-to-back successes would have served as a signal that the painfully determined IPO window finally open.
Instead, retail investors exercise a discernment, no wild enthusiasm.
“I hesitate to draw too many conclusions about the appetite for technical or software -granted IPOs,” says IPO expert Nick Einhorn, VP of research for Renaissance Capital, to Techcrunch. “Although the company has good growth, it might not be enough in the cyber security landscape to get a premium salesfold.”
Renaissance Capital is an IPO market research agency that also offers an IPO Exchange-Traded Fund (ETF).
Sailpoint was a bit of a strange IPO because it was not a startup. It used to be a public company until PE company Thoma Bravo took it private in 2022 and at that time appreciated $ 6.9 billion. The private equity giant is still the majority owner.
This was a lever company like an IPO, not a classic startup with companies. VC supported by VC often have the type of growth potential that investors excites, as was the case with ServiceTitan.
On the positive side for Sailpoint, the company has priced its first 60 million shares at $ 23, above the previously announced range of $ 19 and $ 21. Sailpoint achieved more than $ 1.3 billion, who will use it for operations and OM about $ 1.5 billion in debts that it showed in his books, according to a legal submission. It is also on about a market capitalization of $ 13 billion, a boost of what Thoma Bravo has paid.
“We did not consider this a disappointing IPO in any way. We went from the middle of $ 20 to an end of $ 25 to day 2. In our minds it is a very successful IPO, “CEO Mark McClain told Techcrunch.
Nevertheless, the result is for those who are looking for a sign that IPOs can flow again soon (especially employees of startups in the late phase that look at their paper money and stock options): the signals remain cloudy.
