SailPoint reached a valuation of $12.8 billion following its stock market debut on Thursday, matching the offer price, and receiving a lukewarm reception from investors. The Austin, Texas-based company's shares opened at $23 each, continuing a trend of lackluster debuts in the current year amidst increased investor scrutiny over company valuations.
The IPO market's performance in 2025 has been mixed, with investors balancing deregulation efforts against policy uncertainties and potential delays in interest rate cuts. Karman Holdings, a defense and space company that began trading the same day, saw positive results, while Venture Global fell below expectations last month.
SailPoint initially went public in 2017, following its acquisition by Thoma Bravo three years prior. In 2022, Thoma Bravo repurchased the company in a $6.9 billion deal. SailPoint provides identity security services to clients like General Motors and Hershey, enabling them to establish and manage their security protocols.
The escalating demand for services offered by companies such as SailPoint is being driven by stricter data privacy regulations, a surge in global cyberattacks, and the emergence of cybersecurity threats propelled by artificial intelligence.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted that SailPoint seems well-positioned to capitalize on growing concerns regarding cyber threats. The company recently partnered with Thoma Bravo for an expanded IPO.
Recent data revealed a nearly 1-1/2 year high in U.S. consumer prices, potentially leading to interest rate hikes rather than cuts if inflation remains elevated, as highlighted by Ross Carmel from securities law firm Sichenzia Ross Ference Carmel.
Despite these concerns, IPOs could see a rise as venture backers show eagerness to list, according to Jesse Coors-Blankenship, co-founder, and general partner at Parkway Venture Capital.