ServiceTitan's IPO Plans

Authors: Arasu Kannagi Basil and Jaiveer Shekhawat

(Reuters) – Software startup ServiceTitan is aiming for a valuation of up to $5.16 billion in its U.S. initial public offering, announced on Tuesday. This IPO could be among the last of a year that has seen a resurgence in the market for new listings.

Based in Glendale, California, ServiceTitan seeks to raise as much as $502 million by offering 8.8 million shares priced between $52 and $57 each.

ServiceTitan will join several venture capital-backed firms that have gone public this year, such as the social media platform Reddit and cybersecurity software firm Rubrik.

IPO activity from VC-backed companies has been limited over the past two years due to high interest rates and market volatility. A successful IPO from ServiceTitan could motivate other companies to proceed with their listings.

Josef Schuster, CEO of IPOX, stated, "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."

He added, "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 established itself as a leader in a niche market, providing software for businesses run by technicians in the HVAC sector. The COVID-19 pandemic increased demand for home renovation services, positively impacting the business.

ServiceTitan competes with software vendors like Salesforce (NYSE:CRM), SAP, and Jobber. It was incorporated in 2007 as LinxLogic, launched its platform in 2012, and was rebranded to ServiceTitan in 2014.

Despite a $9.5 billion valuation during the 2021 fundraising boom, ServiceTitan's valuation dropped to $7.6 billion after a funding round in 2022, according to PitchBook data.

ServiceTitan plans to list on the Nasdaq under the symbol "TTAN". Leading its underwriting syndicate are Goldman Sachs, Morgan Stanley (NYSE:MS), Wells Fargo (NYSE:WFC), and Citigroup (NYSE:C).