More stock at the high end: SailPoint (SAIL), an identity software provider, upsized its IPO to 60.0 million shares – up from 50.0 million shares in the prospectus – and priced the IPO at $23.00 – the top of its $21.00-to-$23.00 price range – to raise $1.38 billion on Wednesday night, Feb. 12, 2025. Of the 60.0 million shares, 57.5 million shares were issued and sold by SailPoint, while 2.5 million shares were sold by certain existing stockholders, including Thoma Bravo, the private equity firm. SailPoint will not receive any proceeds from the sale of the shares offered by the selling stockholders.
At pricing, SailPoint had a market cap of $12.8 billion.
SailPoint’s stock opened flat at $23.00 at 1:41 p.m. EST today – Thursday, Feb. 13, 2025 – on the NASDAQ on volume of 8.26 million shares.
SailPoint’s IPO is the first tech IPO – and the first software IPO – of the year. The IPO marks SailPoint’s return to life as a publicly traded company. SailPoint, founded in 2005 and based in Austin, Texas, was taken private in 2022 by Thoma Bravo in a transaction valued at $6.9 billion. After the IPO, Thoma Bravo will still control SailPoint through its ownership of about 88 percent of the outstanding stock, according to the prospectus.
The upsizing of SailPoint’s IPO – a 20 percent increase in the number of shares and the pricing at the top of the recently upward revised range – reflected Wall Street’s hunger for a big tech IPO.
Cornerstone investors AllianceBernstein and Dragoneer Investment Group had each indicated an interest in buying up to 20 percent of the stock in the IPO, according to the prospectus.
Morgan Stanley and Goldman Sachs were the joint lead book-running managers. J.P. Morgan and Evercore ISI acted as book-running managers. BofA Securities, Barclays, Jefferies, RBC Capital Markets, BMO Capital Markets, BTIG, Mizuho, Piper Sandler, TD Cowen and Truist Securities also served as book-runners. Netrex Capital Markets, Academy Securities, CastleOak Securities, Penserra Securities and R. Seelaus & Co. were co-managers.
Paying Off Some Debt
SailPoint intends to use the IPO’s net proceeds to repay part of its term loan, settle outstanding equity awards and equity appreciation rights, pay outstanding fees under the advisory services agreement with Thoma Bravo, and for general corporate purposes, according to the prospectus. SailPoint will not receive any proceeds from the sale of the shares offered by the selling stockholders.
At Jan. 15, 2025, SailPoint had $1.04 billion of outstanding borrowings under the term loan, according to the prospectus.
SailPoint provides enterprises with customized identity security software, according to the prospectus. The options include its Identity Security Cloud, its SaaS-based cloud solution on its unified platform, Atlas, and IdentityQ, its customer-hosted identity security solution.
SailPoint is not profitable. For the 12 months that ended Oct. 31, 2024, SailPoint reported a net loss of $322.99 million on revenue of $824.2 million.
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