By Arasu Kannagi Basil and Jaiveer Shekhawat
(Reuters) -Software startup ServiceTitan is aiming for a valuation of up to $5.16 billion in its U.S. initial public offering, it said on Tuesday, in what could be one of the last few IPOs of the year as a rebound in the market for new software took place. entries.
Glendale, California-based ServiceTitan is looking to raise up to $502 million by offering 8.8 million shares priced between $52 and $57 each.
ServiceTitan will join a handful of venture capital-backed companies, including social media platform Reddit and cybersecurity software company Rubrik, which all went public this year.
Venture capital-backed IPOs have been scarce over the past two years due to high interest rates and market volatility. A successful share sale by ServiceTitan could encourage others to continue with their listings.
“Excellent conditions in the US equity markets and overall very good IPO profits during the previous reporting season make it a favorable environment for companies to go public,” said IPOX CEO Josef Schuster.
“We expect the IPO to proceed smoothly initially, based on the current valuation margin of just over ten times this year’s sales.”
ServiceTitan, founded by Ara Mahdessian and Vahe Kuzoyan, has become a dominant player in a niche market, making software used by companies run by engineers serving the heating, ventilation and air conditioning sectors.
The company was buoyed by the COVID-19 pandemic, which boosted demand for home renovation services among stay-at-home moms.
ServiceTitan – whose competitors are software suppliers Salesforce, SAP and Jobber – was founded in 2007 as LinxLogic. It first launched its platform in 2012 and was rebranded as ServiceTitan in 2014.
While it fetched a $9.5 billion valuation during the 2021 fundraising boom, ServiceTitan was valued at $7.6 billion after a 2022 funding round, PitchBook data showed.
ServiceTitan will be listed on Nasdaq under the symbol “TTAN.”
Goldman Sachs, Morgan Stanley, Wells Fargo and Citigroup lead a syndicate of fourteen companies.
(Reporting by Arasu Kannagi Basil and Jaiveer Shekhawat in Bengaluru; Editing by Anil D’Silva, Saumyadeb Chakrabarty and Vijay Kishore)
