Software firm ServiceTitan valued at nearly $9 billion as shares soar in debut

By Pritam Biswas, Jaiveer Shekhawat and Echo Wang

(Reuters) -Shares of ServiceTitan rose about 42% in their U.S. market debut on Thursday, giving the cloud-based software company a valuation of nearly $9 billion.

The company's shares opened at $101 apiece in their Nasdaq debut, compared with the initial public offering (IPO) price of $71.

The valuation is a step down for the Glendale, California-based company, which was valued at $9.5 billion after a Thoma Bravo-led funding round in 2021.

Strong equity markets, the prospect of lower interest rates and expectations of a soft landing for the economy have bolstered investor confidence in the U.S. IPO market this year.

"The two things that matter the most (for our IPO) are the strength and durability of the business and the favorable market conditions," ServiceTitan CEO and Co-founder Ara Mahdessian said.

"So we're happy that both these things happened, and this is the right time for ServiceTitan to be a public company."

ServiceTitan joins a handful of venture capital-backed firms that have gone public this year, including social media platform Reddit and cybersecurity software firm Rubrik.

Reddit's stock price has increased nearly fivefold from its IPO levels, while Rubrik's shares have more than doubled, as of last close.

Sweden's buy now, pay later platform Klarna and Genesys, an AI-driven developer of call-center software, are also among the major tech firms that are moving toward a U.S. listing.

"I expect 2025 to be an explosive year for IPOs and venture capital, as renewed confidence and available capital breathe life into the broader tech investment landscape," said Joe Endoso, president of Linqto Capital.

ServiceTitan sold 8.8 million shares in the IPO, raising about $625 million. The startup lifted its indicated range for the offering before pricing its IPO above the raised range.

"The higher-than-expected pricing of ServiceTitan's IPO reflects strong demand for the stock and signals growing investor interest in public markets for IPOs," Endoso added.



Founded by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has become a dominant player in a niche market, making software used by more than 11,800 businesses that are run by technicians serving the heating, ventilation and air-conditioning sectors.

Goldman Sachs, Morgan Stanley (NYSE:MS ), Wells Fargo (NYSE:WFC ) and Citigroup (NYSE:C ) led a 14-firm underwriting syndicate for the IPO.

Source: Investing.com

Publicații recente
Oklo target nearly doubled at Wedbush on AI-driven demand for nuclear energy
24.01.2025 - 18:00
Crypto markets lose steam after Trump's first policy move
24.01.2025 - 18:00
Combination of Google's TPU-DeepMind units may be worth $700 bn - DA Davidson
24.01.2025 - 18:00
British American Tobacco, Altria shares rise after menthol ban proposal dropped
24.01.2025 - 18:00
Morocco stocks higher at close of trade; Moroccan All Shares up 0.34%
24.01.2025 - 18:00
Commerzbank says no talks with UniCredit until specific proposal made
24.01.2025 - 18:00
Venture Global aims for $64 billion valuation at debut in test for energy IPOs
24.01.2025 - 18:00
Intuitive Machines stock surges on NASA contract award
24.01.2025 - 18:00
International Paper's $7.2 billion acquisition of DS Smith gets EU approval
24.01.2025 - 18:00
Short-term stock optimism soars among retail investors, AAII survey shows
24.01.2025 - 18:00
Venture Global shares likely to open up to 6% above IPO price
24.01.2025 - 18:00
Intuitive Surgical, American Express Stir Friday's Market Cap Stock Movers
24.01.2025 - 18:00
BMW joins Chinese EV makers in filing EU court challenge to tariffs
24.01.2025 - 18:00
Turkey stocks lower at close of trade; BIST 100 down 0.08%
24.01.2025 - 18:00
Diageo stock jumps on possible Guinness sale
24.01.2025 - 18:00

© Analytic DC. All Rights Reserved.

new
Analiza pieței Cum va afecta raportul NFP de mâine cursul de schimb al dolarului american?