Software startup ServiceTitan seeks up to $5.2 billion valuation in US IPO

12/03/2024

1 minute read

2024.12.03 13:06

By Arasu Kannagi Basil and Jaiveer Shekhawat

(Reuters) -Software startup ServiceTitan is seeking a valuation of up to $5.16 billion in its U.S. initial public offering, it said on Tuesday, in what could be one of the final few flotations of the year that saw a revival in the market for new listings.

Glendale, California-based ServiceTitan is looking to raise up to $502 million by offering 8.8 million shares priced between $52 and $57 each.

ServiceTitan will join a handful of venture capital-backed firms, including social media platform Reddit and cybersecurity software firm Rubrik, which have all gone public this year.

VC-backed IPOs have been sparse over the past two years due to high interest rates and market volatility. A successful share sale by ServiceTitan could encourage others to push ahead with their listings.

“Excellent U.S. stock market conditions and very good earnings of IPOs overall during the previous reporting season make it a favorable environment for companies to go public,” IPOX CEO Josef Schuster said.

“We expect that the IPO will proceed smoothly initially assuming the current valuation range at somewhat above 10 times this year’s sales.”

Founded by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has become a dominant player in a niche market, making software used by businesses that are run by technicians serving the heating, ventilation and air conditioning sectors.

Its business was buoyed by the COVID-19 pandemic, which spurred demand for house renovation services among people staying at home.

ServiceTitan – whose rivals include software vendors Salesforce (NYSE:), SAP, and Jobber – was incorporated in 2007 as LinxLogic. It first launched its platform in 2012 and was renamed to ServiceTitan in 2014.

While it fetched a $9.5 billion valuation during the 2021 fundraising boom, ServiceTitan was valued at $7.6 billion after a 2022 funding round, PitchBook data showed.