ServiceTitan, a Glendale technology company that makes business management software for plumbers, painters and other contractors, announced Tuesday that it plans to raise up to $502 million in its initial public offering on the Nasdaq stock exchange.
The company said it plans to offer 8.8 million shares priced between $52 and $57 each, according to a regulatory filing. At the top of that range, ServiceTitan would have a market cap of $5.16 billion. The company was valued at $7.6 billion after a funding round in November 2022. ServiceTitan has not said when it plans to start trading.
ServiceTitan was founded in 2007 by two college friends from Glendale, Ara Mahdessian, 39, and Vahe Kuzoyan, 41, whose fathers worked as contractors. The company previously raised approximately $1.4 billion from venture capital firms including Iconiq Growth, Bessemer Venture Partners and Battery Ventures.
It counts approximately 8,000 contracting companies as customers and offers an end-to-end software package that can manage booking appointments, generate estimates and process invoices, as well as payroll and temporary workers. Customers range in size from family-owned businesses to large national franchises with a total of more than 100,000 technicians. She charges subscription fees for her services.
Read more:Even Plumbers Need Software: How Glendale’s ServiceTitan Became a Billion-Dollar Startup
The company, which serves contractors across the country, is looking to expand the number of industries and markets it serves. As of July 31, the company had 2,870 employees at its Glendale headquarters and offices elsewhere in the U.S. and internationally.
Competitors include BuildOps, Housecall Pro, Jobber, and other companies that charge subscriptions for their web-based business management software.
ServiceTitan had filed confidential paperwork for an $18 billion public offering in 2022, according to Business Insider, but didn’t move forward after the Federal Reserve sharply raised interest rates to combat inflation, freezing the IPO market.
The company reported revenue of $614 million in the fiscal year ended Jan. 31, up nearly a third from a year earlier, and an operating loss of $195 million, down 28% from fiscal 2023. It had about $147 million in cash and equivalents on hand at January 31 and had net long-term debt of $175 million.
The company’s share structure will ensure that control remains with the founders – Mahdessian is CEO and Kuzoyan president – who will retain all Class B shares, each entitled to 10 votes.
Lead underwriters for the IPO are Goldman Sachs Group, Morgan Stanley, Wells Fargo and Citigroup. They have an option to purchase an additional 1.32 million shares, which will trade under the ticker symbol ‘TTAN’.
Bloomberg contributed to this report.
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This story originally appeared in the Los Angeles Times.
