Software Startup ServiceTitan's IPO

(Reuters) – Software startup ServiceTitan priced its U.S. initial public offering at $71 per share on Wednesday, intending to raise $624.8 million.

The IPO was priced above the company's indicated range of $65 to $67, valuing it at approximately $6.30 billion, according to Reuters calculations.

After facing impacts from high interest rates and market volatility for over two years, the U.S. IPO market has been revitalized by a buoyant stock market and the Federal Reserve's rate-cut cycle.

ServiceTitan joins a select group of venture capital-backed firms including social media platform Reddit and cybersecurity software firm Rubrik, which have gone public this year.

The company is selling 8.8 million shares in the IPO and will be listed on Nasdaq under the ticker symbol "TTAN."

ServiceTitan intends to use the proceeds from the share sale to improve capitalization and financial flexibility, as highlighted in its IPO filing.

The company was valued at $9.5 billion following a funding round led by Thoma Bravo in 2021.

Founded by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has established itself as a leading player in a niche market, providing software utilized by over 11,800 businesses in the HVAC sector.

ServiceTitan competes with Salesforce, SAP, and Jobber and was originally incorporated in 2007 as LinxLogic. It launched its platform in 2012 and rebranded to ServiceTitan in 2014.

Leading a 14-firm underwriting syndicate for the IPO are Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup.