Cybersecurity firm SailPoint wants to go public once more. In its planned IPO, the business intends to sell $1 billion worth of stock. They are planning to reach a valuation of $11.5 billion.
That is how the calculations for a proposed offering of 47.5 million shares. It was disclosed on Tuesday, at prices ranging from $19 to $21, come out. Thoma Bravo, the owner of SailPoint, also intends to sell 2.5 million shares.
SailPoint, a rival of Okta, a company with a $16 billion market capitalization, provides identity management solutions to businesses.
SailPoint has formerly been a publicly traded company. Before Thoma Bravo took SailPoint private in 2022. When it was valued at $6.9 billion, it was publicly traded. After the IPO, the private equity behemoth will still hold more than 87% of the business.
As of October, the business is on track to generate $813 in recurring income annually, according to its S-1 filing. As of January 2024, SailPoint recorded yearly net losses of slightly over $395 million on revenues of over $700 million. The firm also stated that it owed over $1 billion. That is with $1.5 billion in debt on its balance sheet. According to SailPoint, the money raised will be used to pay off its debt and support its business.
SailPoint’s owners are quite financially savvy. Therefore the stock may trade above that range and easily avoid the desired cash haul and valuation.
Mark McClain, the company’s founder and CEO after Thoma Bravo bought it. Still has a minuscule interest of just over 3.6 million.
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He remarked in his prospectus letter and said
“Not many founding CEOs find themselves in a position to introduce their company to the public market for a second time, but I am grateful to be able to do precisely that,”.
This IPO, which may take place next week, won’t benefit any venture capitalists because SailPoint isn’t a company. But they will be keeping a close eye on the offering’s success. Businesses and venture capitalists are still speculating about when to go public with their numerous digital businesses that are ready for an IPO. If ordinary investors buy up the shares, this will be another indication that 2025 would be a good year to open a door as well as a window.
However, other issues may hinder other offerings, even if investors are eager for this IPO.
The Trump administration’s plans to launch a tariff trade war in North America caused a lot of anxiety on Wall Street.
