ServiceTitan founders Vahe Kuzoyan (left) and Ara Mahdessian.
Serve Titan
ServiceTitan is a provider of cloud software for contractors. Initial Public Offering Pricing The price per share on Wednesday was $71, above the expected range.
The company is scheduled to list on Nasdaq on Thursday under the stock code “TTAN.” Previous service titan bulge Its price range is between $65 and $67.
ServiceTitan sold 8.8 million shares in the offering, raising nearly $625 million. Based on the IPO price, ServiceTitan is valued at approximately US$6.3 billion.
Tech IPOs have been sparse since late 2021, when rising inflation and interest rates forced investors away from riskier assets. Cloud software stocks quickly fell out of favor after remote work accelerated during the pandemic.
In March this year, social networks Reddit Going public, data management companies hot on the heels scarlet letter Next month. In September, chipmaker Cerebras filed for an IPO, less than two weeks after the Federal Reserve cut its benchmark interest rate for the first time since 2020. However, the company is yet to make its debut in the market.
Glendale, Calif.-based ServiceTitan filed to go public on November 18. The company issued the stock in 2022 to repay a loan to fund its $577 million acquisition of pest control software provider FieldRoutes.
When raising capital in 2022, ServiceTitan agreed to “compounding ratchet” terms to encourage companies to go public quickly and prevent unnecessary dilution, according to one company. analyze From venture capital firm Meritech Capital.
Bessemer Venture Partners, TPG and Iconiq are the company’s largest shareholders, along with founders Vahe Kuzoyan and Ara Mahdessian.
According to the agency, Mahdesian’s father was in the contracting business, while Kuzoyan’s father ran pipeline projects. Los Angeles Times. The founders said in a prerecorded IPO roadshow that they see technology as a way to modernize their family business. Their software helps with marketing, sales, scheduling and customer service.
ServiceTitan’s preliminary results for the October quarter showed revenue of $198.5 million and a net loss of about $47 million. This represents revenue growth of approximately 24% annually, the highest growth rate since mid-2023. But the company’s net loss widened from about $40 million in the October quarter.
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