SailPoint Makes Strong Debut on Nasdaq, Raising $1.38 Billion in IPO
New York, NY - SailPoint Technologies (SAIL) made its highly anticipated debut on the Nasdaq on Thursday, pricing its initial public offering (IPO) at the top end of its targeted range of $21 to $23 per share. The company raised a total of $1.38 billion in proceeds, valuing it at $12.6 billion ahead of its IPO.
SailPoint's closest competitor, Okta (OKTA), is currently valued at $16.8 billion.
"The market seems to be hungry today for what we call growth at scale with profitability," said SailPoint founder and CEO Mark McClain on Yahoo Finance. "That's kind of the magic combo of today. And we were that profile."
SailPoint is a leading provider of identity management solutions, with revenue of $875 million to $877 million in annual recurring revenue for the year ended January 31, 2025. This represents a year-over-year growth of approximately 41%.
While the company remains unprofitable on a GAAP basis, it claims profitability on a non-GAAP basis.
Post-IPO, Thoma Bravo will own approximately 88% of SailPoint and will have final say over board-level decisions. It will also be able to nominate members to SailPoint's board.
SailPoint's IPO marks a significant test for the tech IPO market in 2025. Renaissance Macro predicts a strong year for IPOs, with an estimated 155 to 195 companies coming to market and collectively raising $40 billion to $55 billion in funding.
"There's generally a sense that we're going to move to a less regulatory-oriented administration," said McClain. "That probably sets up a better backdrop" for IPOs.
In 2024, the IPO aftermarket performance on US exchanges showed strength, with average gains of 30% for deals that raised $50 million and above. A total of 176 US IPOs raised $33 billion in 2024.