Exclusive-KKR-backed OneStream prices US IPO above range to raise $490 million, sources say

By Echo Wang

NEW YORK (Reuters) -Financial software maker OneStream, which is backed by private equity firm KKR, priced its U.S. initial public offering (IPO) above its indicated range on Tuesday, raising $490 million, people familiar with the matter said.

The company, whose software offerings assist organizations with tasks including planning, budgeting and forecasting, and its shareholders sold 24.5 million shares, priced at $20 each, the sources said, requesting anonymity as the discussions are confidential.

The share sale values OneStream at $4.6 billion. OneStream had aimed to price its IPO between $17 and $19 per share.

OneStream and KKR did not immediately respond to requests for comment.

OneStream’s IPO represents a climb-down from the $6 billion valuation at which the company raised funding from investors, including D1 Capital Partners and Tiger Global Management, in 2021.

The U.S. IPO market is showing signs of a rebound after a slowdown in listings in 2022 and 2023. This year has been marked by a rise in stock market launches as investors grow more confident in new flotations in the hopes of a soft landing for the economy.

On Wednesday, cold storage real estate investment trust Lineage is aiming to raise up to $3.85 billion in its New York IPO, in what is expected to be the biggest listing of the year.

Founded in 2010, OneStream helps chief financial officers prepare and report financial statements to regulators and investors. KKR acquired a majority stake in OneStream in 2019.

The company counts large corporations, including Toyota Motor (NYSE:), UPS, News Corp (NASDAQ:) and General Dynamics (NYSE:) as its customers.

OneStream will list its shares on Nasdaq on Wednesday under the ticker “OS”. Morgan Stanley, J.P. Morgan and KKR’s capital markets unit are the lead underwriters for the offering.