ServiceTitan, a provider of cloud software for contractors, has priced its IPO on Wednesday at $71 per share, above the expected range.
The company is anticipated to debut on the Nasdaq on Thursday under the ticker symbol “TTAN.” ServiceTitan before educated The price range is between $65 and $67.
ServiceTitan sold 8.8 million shares as a part of the offering, which might amount to a capital increase of nearly $625 million. At the IPO price, ServiceTitan is price about $6.3 billion.
Technology IPOs have develop into rare since late 2021, as inflation and rising rates of interest pushed investors out of riskier assets. Cloud software stocks quickly fell out of favor after distant work accelerated their growth through the pandemic.
In March this yr social network Reddit went public, followed by an information management company category the next month. In September, lower than two weeks after the Federal Reserve cut rates of interest for the primary time since 2020, chipmaker Cerebras filed for an initial public offering. However, the corporate has yet to enter the market.
Glendale, Calif.-based ServiceTitan filed to go public on Nov. 18. The company said a portion of the proceeds would go toward redeeming all outstanding shares of its non-convertible preferred stock. The company had issued these shares in 2022 to repay loans to finance its $577 million acquisition of pest control software provider FieldRoutes.
In raising money in 2022, ServiceTitan agreed to terms that will encourage the corporate to go public quickly and stop unnecessary dilution, in accordance with a “compounding ratchet.” evaluation from the enterprise firm Meritech Capital.
Bessemer Venture Partners, TPG and Iconiq are amongst the corporate's foremost shareholders, alongside founders Vahe Kuzoyan and Ara Mahdessian.
Mahdessian's father had a construction company and Kuzoyan's father worked within the plumbing sector, they are saying Los Angeles Times. The founders said in a pre-recorded IPO roadshow that they viewed technology as a solution to modernize their family businesses. Their software will help with marketing, sales, scheduling, and customer support.
ServiceTitan's preliminary results for the October quarter show a net lack of about $47 million on revenue of $198.5 million. That suggests revenue growth of about 24% year-over-year, the very best rate since mid-2023. But the corporate's net loss widened from about $40 million within the October quarter last yr.
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