Cybersecurity firm SailPoint said on Tuesday it is now seeking a valuation of up to $12.57 billion in its U.S. initial public offering, marking the year’s first major test of investor appetite for tech stocks.
Initial public offerings in the U.S. are poised for a strong comeback after nearly three years of sluggish activity, with established companies that have proven revenue and high-profile backers expected to lead the way.
The Austin, Texas-based company and its parent Thoma Bravo are together selling 50 million shares, priced between $21 and $23 each to raise as much as $1.15 billion.
SailPoint’s previous proposed range was between $19 and $21 to raise up to $1.05 billion for a target valuation of up to $11.5 billion.
While an IPO’s final pricing is never guaranteed to fall within a company’s targeted range, raising the proposed price band ahead of the deal’s closing is often seen as a sign of strong investor demand.
SailPoint’s listing would mark a major win for its private equity owner Thoma Bravo, and its success could encourage more tech startups to move forward with IPOs, analysts have said.
The Chicago-based buyout firm first acquired SailPoint in 2014 and took it public three years later.
The company traded on the New York Stock Exchange from 2017 until 2022, when Thoma Bravo reacquired it in a $6.9 billion deal.
Founded in 2005, SailPoint specializes in identity and access management software, helping businesses prevent unauthorized access and reduce the risk of sensitive data leaks.
Rising cyberattacks, driven in part by bad actors leveraging artificial intelligence, have increased demand for identity security solutions.
Thoma Bravo will own a roughly 88 per cent stake in SailPoint after the offering closes.
Morgan Stanley and Goldman Sachs are the lead underwriters for the offering.
SailPoint will list on the Nasdaq under the symbol “SAIL”.
