SailPoint Makes a Strong Return to the Public Markets
IPO Overview
SailPoint (SAIL), a leading identity management technology provider, has commenced trading on the Nasdaq. The company raised $1.38 billion in its initial public offering (IPO), pricing shares at the high end of its targeted range of $21 to $23. SailPoint's valuation now stands at $12.6 billion, approaching that of its competitor Okta (OKTA).
Market Sentiment
The IPO market has been buoyed by investor appetite for companies that exhibit both scale and profitability. SailPoint fits this profile, and CEO Mark McClain attributes the company's strong performance to its consistent growth and financial discipline.
Company Overview
SailPoint, which was previously taken private by Thoma Bravo in 2017, has returned to the public markets as a more mature company. While it still operates at a loss, the company has shifted to a software-as-a-service model and projects annual recurring revenue of $875-$877 million for the year ending January 2025.
Controlled Company Status
Post-IPO, Thoma Bravo will retain an 88% stake in SailPoint and will have significant influence over board-level decisions.
IPO Outlook
SailPoint's IPO is seen as a major test for the tech IPO market in 2025. Renaissance Macro predicts a banner year for IPOs, with an estimated 155-195 companies coming to market. Regulatory uncertainty is expected to ease, creating a more favorable backdrop for tech companies looking to raise capital.