By Pritam Biswas, Jaiveer Shekhawat and Echo Wang
(Reuters) -Shares of ServiceTitan rose about 42% in their U.S. market debut on Thursday, giving the cloud-based software company a valuation of nearly $9 billion.
The company’s shares opened at $101 each in their Nasdaq debut, compared to the IPO price of $71.
The valuation is a step back for the Glendale, California-based company, which was valued at $9.5 billion after a Thoma Bravo-led funding round in 2021.
Strong stock markets, the prospect of lower interest rates and expectations of a soft landing for the economy have boosted investor confidence in the US IPO market this year.
“The two things that matter most (for our IPO) are the strength and sustainability of the company and favorable market conditions,” said ServiceTitan CEO and co-founder Ara Mahdessian.
“So we’re happy that both of those things have happened, and this is the right time for ServiceTitan to become a publicly traded company.”
ServiceTitan joins a handful of venture-backed companies that have gone public this year, including social media platform Reddit and cybersecurity software company Rubrik.
Reddit’s stock price has risen nearly fivefold from its IPO level, while Rubrik’s stock has more than doubled since its last IPO.
Swedish ‘buy now, pay later’ platform Klarna and Genesys, an AI-powered call center software developer, are also among the major tech companies heading for a US stock market listing.
“I expect 2025 to be an explosive year for IPOs and venture capital as renewed confidence and available capital reinvigorate the broader technology investing landscape,” said Joe Endoso, president of Linqto Capital.
ServiceTitan sold 8.8 million shares in its IPO, raising approximately $625 million. The startup increased the stated range for the offering before pricing the IPO above the increased range.
“The higher-than-expected pricing of ServiceTitan’s IPO reflects strong demand for the shares and signals growing investor interest in public markets for IPOs,” Endoso added.
Founded by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has become a dominant player in a niche market, creating software used by more than 11,800 companies run by engineers serving the heating, ventilation and air conditioning sectors.
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup led a syndicate of fourteen firms for the IPO.
(Reporting by Pritam Biswas and Jaiveer Shekhawat in Bengaluru and Echo Wang in New York; Editing by Devika Syamnath and Shreya Biswas)
