ServiceTitan, a software startup, is aiming for a valuation of up to $5.16 billion in its upcoming initial public offering (IPO) in the United States, marking one of the final major public offerings in a year that has seen a resurgence in the IPO market.
The Glendale, California-based firm announced intentions to raise as much as $502 million by offering 8.8 million shares at a price range of $52 to $57 per share.
Joining the ranks of venture capital-backed companies like Reddit and Rubrik, ServiceTitan is moving forward with its public debut. This move comes after a period of relative scarcity in VC-backed IPOs, attributed to high interest rates and market fluctuations. The successful completion of ServiceTitan's IPO could serve as a catalyst for other companies considering going public.
ServiceTitan, established by Ara Mahdessian and Vahe Kuzoyan, has carved out a significant presence in a specialized market, developing software for service businesses, particularly those in the heating, ventilation, and air conditioning (HVAC) industry.
Competing with established software providers such as Salesforce (NYSE:CRM), SAP, and Jobber, ServiceTitan has distinguished itself since its inception. The company was originally founded as LinxLogic in 2007, launched its platform in 2012, and rebranded to ServiceTitan in 2014.
Despite reaching a peak valuation of $9.5 billion during the fundraising frenzy of 2021, ServiceTitan's valuation was adjusted to $7.60 billion following a funding round in 2022. According to PitchBook data, the company has accumulated $1.46 billion in investment to date.
ServiceTitan's plans for an IPO were initially kept under wraps, with a confidential filing reported by Reuters in early 2022. The offering is being facilitated by a syndicate of 14 underwriting firms, including industry heavyweights Goldman Sachs, Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C).
Upon completion of the IPO, ServiceTitan's shares will be available on the Nasdaq exchange under the ticker symbol "TTAN."
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