Cybersecurity firm SailPoint is hoping to go public — once more. This time, the corporate plans to promote $1 billion price of inventory and hit an $11.5 billion valuation in its deliberate IPO.
That’s how the mathematics works out for a proposed providing it announced Tuesday of 47.5 million shares, at between $19 and $21. SailPoint’s proprietor, Thoma Bravo, plans to additionally promote 2.5 million shares.
SailPoint affords id administration wares to enterprises and is a competitor to $16 billion market-cap Okta.
This isn’t SailPoint’s first time as a public firm. It was publicly traded till Thoma Bravo took SailPoint personal in 2022, valuing it at $6.9 billion on the time. The personal fairness large will nonetheless personal over 87% of the corporate after the IPO.
The corporate said in its S-1 filing that it’s on monitor for $813 annual recurring income, as of October. SailPoint reported annual internet losses of simply over $395 million on about $700 million in revenues as of January 2024; the corporate stated it has greater than $1 billion in debt, with its steadiness sheet displaying debt of $1.5 billion. SailPoint stated it can use the proceeds to handle its debt, in addition to fund operations.
Given the monetary sophistication of SailPoint’s house owners, the inventory might very nicely value above that vary and simply bypass that hoped-for money haul and valuation.
Founder Mark McClain, who stayed on as CEO after Thoma Bravo acquired the corporate, nonetheless has a comparatively tiny stake of simply over 3.6 million shares.
“Not many founding CEOs discover themselves ready to introduce their firm to the general public marketplace for a second time, however I’m grateful to have the ability to do exactly that,” he remarked in his prospectus letter.
As a result of SailPoint isn’t a startup, this IPO, which may occur subsequent week, received’t be a boon for any enterprise capitalists. However the success of the providing shall be carefully watched by them. VCs and startups are nonetheless studying the tea leaves on the timing to carry their many IPO-ready tech startups public. Ought to retail buyers gobble the inventory, this shall be one other sign that 2025 could possibly be a great 12 months to open not only a window, but additionally a door.
Then once more, even when buyers are hungry for this IPO, different components may gradual different choices.
Wall Street grew plenty nervous over the Trump administration’s plans to begin a North America tariff commerce struggle, though these plans have now been postponed for not less than a month. Ought to coverage occasions maintain rattling the markets, tech startups could proceed to remain underneath cowl.