ServiceTitan prices at $71, above the expected range

ServiceTitan, a cloud software provider for contractors, It priced the IPO $71 a share on Wednesday, above the expected range.

The company will debut Thursday on the Nasdaq under the symbol “TTAN.” Before ServiceTitan get up its price range between $65 and $67.

ServiceTitan sold 8.8 million shares in the offering, which would raise nearly $625 million. At the IPO price, ServiceTitan is worth about $6.3 billion.

Tech IPOs have been scarce since late 2021, when inflation and rising interest rates drove investors away from risky assets. Cloud software stocks lost ground quickly after pandemic-era remote work accelerated growth.

In March of this year, the social network Reddit went public, followed by data management companies rubric has next month. In September, less than two weeks after the Federal Reserve cut the benchmark rate for the first time since 2020, chipmaker Cerebras. archived for an IPO. However, the company has not yet launched it in the market.

ServiceTitan, based in Glendale, California, filed to go public in november 18. The company said some of the proceeds would be used to buy back all of its non-convertible preferred stock. It issued that stock in 2022 to repay loans to finance its $577 million acquisition of pest control software provider FieldRoutes.

While raising money in 2022, ServiceTitan agreed to “compound ratchet” terms that encourage the company to go public quickly and avoid unnecessary dilution, according to one. the analysis from venture firm Meritech Capital.

Bessemer Venture Partners, TPG and Iconiq are among the company’s major shareholders, along with founders Vahe Kuzoyan and Ara Mahdessian.

Mahdessian’s father had a contracting business, and Kuzoyan’s father was a plumber. Los Angeles Times. The founders said in a pre-taped IPO roadshow that they saw technology as a way to modernize their family businesses. Their software can help with marketing, sales, programming, and customer service.

ServiceTitan’s first October quarter results show a net loss of about $47 million on revenue of $198.5 million. This suggests year-over-year revenue growth of roughly 24%, the highest rate since mid-2023. But the company’s net loss widened from about $40 million in the October quarter last year.

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