Cybersecurity firm SailPoint said today it now seeks a valuation of up to US$12.57 billion in its US initial public offering, signalling strong demand for the year's first major test of investor appetite for tech stocks.
US IPOs are poised for a strong comeback after nearly three years of sluggish activity, with established companies that have proven revenue and high-profile backers expected to lead the way.
SailPoint and its parent Thoma Bravo are together selling 50 million shares, priced between US$21 and US$23 each to raise as much as US$1.15 billion.
The Texas-based company's previous proposed range was between US$19 and US$21 to raise up to US$1.05 billion for a target valuation of around US$11.5 billion.
"Raising the price range is a good indicator that market participants are willing to pay up for high quality deals," said Josef Schuster, CEO of IPO-focused investment indexes IPOX.
"We believe this is a good sign for forthcoming IPOs from growth sectors, including technology."
Founded in 2005, SailPoint specializes in identity and access management software, helping businesses reduce the risk of sensitive data leaks.
Rising cyberattacks, driven in part by bad actors leveraging artificial intelligence, have increased demand for identity security solutions.
Tech IPO pipeline
The technology IPO pipeline for 2025 features several high-profile startups, with fintech giant Chime, AI software startup Genesys and chipmaker Cerebras Systems expected to headline the market rebound.
High-growth technology companies suffered the most during the market downturn over the past three years, as investors shunned the sector over lofty valuations and cash burn.
"Technology IPOs need a win, and a strong reception to SailPoint would go a long way to opening the window for the dozens of pre-IPO tech unicorns waiting on the sidelines," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
SailPoint's listing would mark a major win for its private equity owner Thoma Bravo, and its success could encourage more tech startups to move forward with IPOs, analysts have said.
The Chicago-based buyout firm first acquired SailPoint in 2014 and took it public three years later.
The company traded on the New York Stock Exchange from 2017 until 2022, when Thoma Bravo reacquired it in a US$6.9 billion deal.
Thoma Bravo will own a roughly 88 per cent stake in SailPoint after the offering closes.
Morgan Stanley and Goldman Sachs are the lead underwriters for the offering.
SailPoint will list on the Nasdaq under the symbol "SAIL".
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