By Arasu Kannagi Basil
(Reuters) -SailPoint said on Tuesday it was targeting a valuation of up to $11.5 billion in its New York flotation, as the cybersecurity firm looks to go public again in the United States after more than two years.
Private equity-backed companies are expected to lead the initial public offering market as sponsors look to unload holdings and return capital to investors.
Austin, Texas-based SailPoint and parent Thoma Bravo are offering 47.5 million and 2.5 million shares, respectively, priced between $19 and $21 each to raise a total of up to $1.05 billion.
The IPO, which sets the stage for this year’s first major U.S. tech flotation, will test the investor appetite, as it follows underwhelming debuts from high-profile listings Venture Global and Smithfield Foods.
While there has been a recovery in the IPO market, investors remain selective about which companies to back and are cautious about valuations.
“While the lukewarm debut from Venture Global might have been a reality check, it was unlikely to impact IPO plans of tech candidates,” said Kamran Ansari, venture partner at Headline.
“The acceptance of these new names might not be as robust as people thought. But the broader market has been fairly robust.”
Increasing cyberattacks, fueled in part by the use of artificial intelligence by bad actors, has boosted the demand for identity security offerings.
Shares of cybersecurity firm Rubrik have more than doubled since going public last year.
Founded in 2005, SailPoint specializes in identity and access management software, which helps businesses mitigate unwanted user access and reduce the risk of sensitive data leaks.
SailPoint’s identity security offerings compete with products from IBM, Microsoft, Oracle, CyberArk, Okta and One Identity.
Its customers include truckmaker PACCAR, student loan servicer Nelnet and British supermarket chain ASDA.
POISED FOR STOCK MARKET RETURN
Thoma Bravo, which manages about $166 billion in assets, first acquired SailPoint in 2014.
The Chicago-based buyout firm took SailPoint public in New York three years later, in what was its first-ever IPO of a portfolio company.
Thoma Bravo exited its position in SailPoint by the end of 2018. SailPoint traded on the New York Stock Exchange from 2017 until 2022, when Thoma Bravo reacquired it in a $6.9 billion deal.
SailPoint was in the early stages of its transition to a software-as-a-service (SaaS) model during its first foray into the public markets.
Since going private, the company has largely completed its transition to a SaaS-first subscription model.
