ServiceTitan price is at 71 USD, higher than expected

ServiceTitan, a cloud software provider for contractors, its IPO pricing at $71 a share on Wednesday, higher than expected.

The company will debut on Nasdaq on Thursday under the ticker symbol “TTAN.” Former Titan Service up Its price ranges from $65 to $67.

ServiceTitan sold 8.8 million shares in the offering, the amount raised will amount to nearly 625 million USD. At the IPO price, ServiceTitan is worth about $6.3 billion.

Tech IPOs have been sparse since late 2021, as rising inflation and interest rates pushed investors out of riskier assets. Cloud software stocks quickly fell out of favor after remote work during the pandemic accelerated their growth.

In March this year, social networks Reddit went public, followed by a data management company self-assessment sheet female next month. In September, less than two weeks after the Federal Reserve lowered its benchmark interest rate for the first time since 2020, chipmaker Cerebras apply for an IPO. However, the company is yet to launch in the market.

ServiceTitan, based in Glendale, California, has filed to go public on November 18. The company said some of the proceeds will be used to repurchase all outstanding shares of non-convertible preferred stock. It issued that stock in 2022 to repay loans to fund its $577 million acquisition of pest control software provider FieldRoutes.

While raising capital in 2022, ServiceTitan agreed to “ratchet” terms that incentivized the company to quickly go public and prevent unnecessary dilution, according to a report. Analysis from the joint venture company Meritech Capital.

Bessemer Venture Partners, TPG and Iconiq are among the company’s top shareholders, along with founders Vahe Kuzoyan and Ara Mahdessian.

According to reports, Mahdessian’s father was in the contracting business, and Kuzoyan’s father was in the plumbing business. Los Angeles Times. The founders said in a pre-recorded IPO roadshow that they see technology as a way to modernize their family’s business. Their software can help with marketing, sales, planning, and customer service.

ServiceTitan’s preliminary results for the October quarter showed a net loss of about $47 million on revenue of $198.5 million. That represents about 24% year-over-year revenue growth, the highest rate since mid-2023. However, the company’s net loss widened from about $40 million in the October quarter of last year .

CLOCK: Mitchell Green said many tech companies have effectively completed their IPOs as private businesses