On February 4, cybersecurity firm SailPoint announced its goal to achieve a valuation of up to $11.5 billion through its initial public offering in the United States.
Private equity-backed companies are expected to take the lead in the IPO market as sponsors seek to divest their holdings and provide returns to investors.
SailPoint and its parent company, Thoma Bravo, plan to offer 50 million shares priced at $19-$21 each, aiming to raise a total of up to $1.05 billion. SailPoint, headquartered in Austin, Texas, will offer 47.5 million shares, while Thoma Bravo will sell 2.5 million shares.
This IPO will be a significant indicator of investor interest, especially following lukewarm receptions to some prominent listings, potentially influencing other firms considering going public in the near future.
Investors' cautious stance towards backing companies is evident, as they remain selective in their choices.
Established in 2005, SailPoint specializes in identity and access management software, helping businesses manage user access effectively and minimize the risk of data breaches.
SailPoint's identity security solutions compete with offerings from industry giants like IBM, Microsoft, Oracle, CyberArk, Okta, and One Identity. Notable customers include truckmaker PACCAR, student loan servicer Nelnet, and British supermarket chain ASDA.
Thoma Bravo, managing assets of about $166 billion, acquired SailPoint in 2014. Three years later, the Chicago-based buyout firm took SailPoint public in New York, marking Thoma Bravo's first IPO for a portfolio company.
Thoma Bravo divested its SailPoint holdings by the end of 2018. SailPoint was listed on the New York Stock Exchange from 2017 until 2022 when it was acquired by Thoma Bravo in a $6.9 billion deal.
Key investors AllianceBernstein and Dragoneer Investment Group have expressed interest in purchasing up to 20% of the shares available in the IPO.
Leading the underwriting are Morgan Stanley and Goldman Sachs. SailPoint will be listed on the Nasdaq under the symbol "SAIL."