Cloud software start-up company ServiceTitan has been valued at $5.95 billion ahead of its upcoming initial public offering (IPO).
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The company has announced plans to sell 8.8 million shares at a price of $65 to $67 in the IPO that is expected to take place before year’s end. At the $5.95 billion valuation, ServiceTitan’s IPO could potentially raise up to $589.6 million in capital for the company.
The California-based concern will trade on the Nasdaq stock exchange under the ticker symbol “TTAN.” ServiceTitan is one of only a few big technology IPOs this year after successful public debuts from Reddit (RDDT) and Rubrik (RBRK).
Improving Finances
Founded in 2007, ServiceTitan makes cloud software for advertising, scheduling jobs, dispatching workers, invoicing clients, and receiving payments. Its customers are mostly contractors such as plumbers and roofers. The company reported a $35.7 million net loss on $193 million in revenue at the end of July this year, according to its IPO filing.
However, revenue at ServiceTitan rose 24% year-over-year, and the quarterly loss narrowed from $52 million a year earlier. The company’s IPO is being managed by leading Wall Street investment banks Goldman Sachs (GS) and Morgan Stanley (MS).
Is RBRK Stock a Buy?
As ServiceTitan’s stock has not yet begun to trade on a public exchange, we look instead at the stock of Rubrik, which has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 14 Buy and one Hold recommendations issued in the last three months. The average RBRK price target of $47.62 implies 31.18% downside risk from current levels.
