Sailpoint’s Ipo on Thursday was a disappointment for anyone who hoped it would show that the technology IPO is hot again.
The first day trading ended under the initial price of $ 23. The shares have a better Friday, closing over $ 24. But this is nothing close to the big Bang Bang and Vcs companies hope.
For example, Servicetitan, the latest IPO of Technology in December, was extremely successful. Share pricing appeared from $ 71 to $ 105 on day 1, and is currently trading about $ 100.
Back-back successes would have served as a signal that the IPO window closed with pain is finally opening.
On the contrary, retail investors are distinguishing, not wild enthusiasm.
“I am reluctant to draw many conclusions on the appetite for IPO of technology or software from it,” Ipo Nick Einhorn, VP for Renaissance Capital, tells Techcrunch. “While the company has a good growth, it may not have stayed enough in the online security landscape to give a multiple premium sales.”
Renaissance Capital is an IPO market research firm that also offers a fund traded by IPO (ETF).
Sailpoint was a bit a strange ipo because it wasn’t a start. Previously it was a public company until the firm Pe Thoma Bravo got it private in 2022, estimating it at $ 6.9 billion at the time. The private capital giant is still the owner of the majority.
This was a lever buying company as an IPO, not a classic start -up start. VC -supported beginnings often have the type of growth potential that harasses investors, as was the case with Servicetan.
On the positive side for Sailpoint, the company valued its 60 million initial shares at $ 23, above its previously announced range of $ 19 and $ 21. Sailpoint withdrew over $ 1.3 billion, which will use them for operations and pay about $ 1.5 billion debt she showed in her books, according to a regulatory appearance. Also on a $ 13 billion market cap, an incentive from what Thoma Bravo paid.
“In no way did we consider this a disappointing IPO. We went from the middle of $ 20 near $ 25 on day 2. In our minds, it’s a very successful IPO,” Ceo Mark McClain told Techcrunch.
However, the result for those looking for a sign that IPOs can flow again soon (especially the late-stage start-up employees who look at their paper money and stock options): the signals remain dark.
