ServiceTitan (TTAN Proposed) gave Wall Street what it wanted early today: The cloud platform for “the trades” – plumbers, electricians, HVAC techs, landscapers and more – unveiled the terms for its IPO – 8.8 million shares at a price range of $52.00 to $57.00 to raise $479.6 million, if priced at the $54.50 mid-point of its range. Under those terms, Service Titan would go public at a market cap of $4.93 billion.
Goldman Sachs, Morgan Stanley, Wells Fargo Securities and Citigroup are the joint book-runners.
ServiceTitan’s IPO is set for pricing next week – on Wednesday night, Dec. 11, 2024 – to trade Thursday, Dec. 12, 2024, on the NASDAQ.
The disclosure of ServiceTitan’s IPO terms and the launch of the deal come within about two weeks of the company’s S-1 filing on Nov. 18, 2024. And no, it wasn’t Santa Claus who prompted this. ServiceTitan had set a deadline to go public by May 2024 or risk having to dilute its shares, according to TechCrunch.
The unveiling of ServiceTitan’s IPO terms gave IPO investors what they were hoping for: “We need one really good IPO before the year ends to get things going.”
The company, founded in 2007, has its roots in the trades. The prospectus tells the story:
“Its founders, Ara Mahdessian and Vahe Kuzoyan, are the sons of trades business owners.. They grew up watching their parents work late into the night after full days in the field—balancing the books, preparing invoices and scheduling the next day’s work—manually performing repetitive tasks that consumed their time and diverted their energy away from what they loved: serving customers and spending time with their families.
“Ara and Vahe founded ServiceTitan to provide tradespeople, like their parents, with technology that is purpose-built to help trades businesses thrive. We built our cloud-based software platform to offer end-to-end capabilities to manage complex workflows, connect key stakeholders and provide impactful industry best practices. ServiceTitan remains to this day maniacally focused on the success of our customers as we fundamentally believe that our customers’ success leads to our success.”
ServiceTitan, based in Glendale, California, provides a cloud-based software platform that connects and manages business workflows such as advertising, job scheduling and management, dispatching, generating estimates and invoices, payment processing and more, according to the prospectus.
ServiceTitan is not profitable. The company reported a net loss of $183.0 million on revenue of $685 million for the 12 months that ended July 31, 2024, according to the prospectus. Its Retail Roadshow presentation shows that for the three months that ended July 31, 2024, ServiceTitan’s net loss shrank by 31 percent while its revenue grew 24 percent.
Stay tuned.
(For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com website.)
Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board.
To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message.
Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions.
Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.