Cybersecurity Firm SailPoint Targets $11.5B Valuation in IPO Return
SailPoint Technologies, a cybersecurity provider, aims for a valuation of up to $11.5 billion in its upcoming initial public offering (IPO) on the Nasdaq exchange.
Backed by private equity firm Thoma Bravo, SailPoint plans to raise around $1.05 billion by offering 50 million shares priced between $19 and $21 apiece. Former owner Thoma Bravo will divest 2.5 million shares, while SailPoint itself will sell 47.5 million.
This IPO marks a significant test of investor sentiment following recent underwhelming market debuts. However, SailPoint's focus on identity and access management software, which helps businesses secure sensitive data, positions it well in a growing industry.
Founded in 2005, SailPoint competes with established players like IBM, Microsoft, and Okta. Its client base includes PACCAR, Nelnet, and ASDA.
Thoma Bravo, with $166 billion under management, initially acquired SailPoint in 2014 and took it public in 2017. Thoma Bravo reacquired the company in 2022.
Cornerstone investors AllianceBernstein and Dragoneer Investment Group expressed interest in purchasing up to 20% of the shares offered in the IPO. Morgan Stanley and Goldman Sachs will serve as lead underwriters.
The IPO is expected to set the tone for other potential listings in the coming months. Investors remain cautious but selective in their support, emphasizing valuations.