Finance Platform OneStream Aims to Raise $465.5 Million in IPO

OneStream is attempting to raise $465.5 million in an initial public offering (IPO).

The cloud-based enterprise finance platform revealed its plans in a filing with the Securities and Exchange Commission Monday (July 15). OneStream and its shareholders — including investment group KKR — are offering 24.5 million shares for $17 to $19 each.

Based in Michigan, OneStream provides solutions for finance chiefs in a variety of industries, including financial services, healthcare and higher education, offering services in the financial planning and accounting arenas.

The listing is happening amid a period of recovery for the IPO market in the United States after a long fallow stretch, Bloomberg reported Monday. IPOs on the U.S. markets raised more than $21 billion during the first six months of the year, close to 70% above the same period last year.

Companies exploring IPOs include the investing and checking accounts app Acorns which expects to go public, possibly in the next couple of years.

“That is likely something we will do in the future,” Acorns CEO Noah Kerner said last month.

The company’s app — which offers checking accounts, retirement savings and debit cards and allows users to invest in exchange-traded funds (ETFs) and custom portfolios — has nearly 6 million subscribers.

Other companies have shown reluctance to go public. For example, StubHub delayed its IPO until at least September.

Goldman Sachs said earlier this year that 2024 could mark a recovery for the IPO market, with its IPO Issuance Barometer reaching its highest level in two years at that time.

“We expect the U.S. economy will continue to grow, the nominal two-year UST yield will decline modestly, and valuations will remain elevated relative to history,” Goldman Sachs strategists wrote in February. “If soft data improve to match the hard economic data and equity investor pricing of economic growth, it could lead to a further increase in our IPO Issuance Barometer in coming months.”

In May, the CEO of Swedish FinTech Trustly said going public isn’t on its radar, despite showing strong financials, because it has to convince investors of the strength of its business model before it can consider a public listing.

“We need another year or two to really demonstrate to the market that open banking is happening, it’s here,” Trustly CEO Johan Tjarnberg said at the time.