IPO Sailpoint on Thursday was a disappointment for anyone who hopes that it means that the technological IPO is hot again.
The first day trade ended below the initial price of USD 23. The actions reached a barely higher Friday, ending with over USD 24. But this is nothing similar to Big Bang and VCS.
For example, Servicetitan, the last public offer in December, was a huge success. The price of the shares has jumped from USD 71 to even USD 105 on day 1 and is still around $ 100.
The successes yourself in the second place can be a signal that the IPO window painfully stuck is finally opening.
Instead, retail investors practice insight, not wild enthusiasm.
“I hesitate whether to draw too many conclusions from it on the appetite for IPO technology or software,” says Techcrunch, IPO expert, vp of research for Renaissance Capital. “Although the company has a good increase, perhaps it did not stand out enough in the cybersecurity landscape to receive a multiple of premium sales.”
Renaissance Capital is a company dealing with IPO market research, which also offers the stock exchange Fund (ETF).
Sailpoint was a bit strange IPO because it wasn’t a startup. Earlier it was a public company, until PE Thom Bravo did not take him private in 2022, valuing him at $ 6.9 billion at that time. The Private Equity giant is still a majority owner.
It was a purchasing company of the lever as IPO, not a classic startup supported by the undertaking. Startups supported by VC often have a variety of growth potential that excites investors, as in the case of Servicetitans.
On the positive side of Sailpoint, the company valued the initial 60 million shares at USD 23, above the previously announced range of $ 19 and 21. Sailpoint won over $ 1.3 billion, which he’ll use for surgery and repay about $ 1.5 billion in debt, which he showed on his books, as regulatory notification. It is also about $ 13 billion in market capitalization, which is a reinforcement from what Thoma Bravo paid.
“We didn’t consider it disappointing IPO in any way. We devoted $ 20 to the $ 25 from the inside to close on 2. In our minds it is very successful IPO, “said Techcrunch, CEO of Mark McClain.
Despite this, the result for people looking for a sign that IPO may soon flow again (especially employees of late start-ups, looking at their paper options and motion options): the signals remain dark.