Autonomous cybersecurity startup SentinelOne started trading at $46 per share on the New York Stock Exchange (NYSE) on Wednesday (June 30), some 30 percent higher than its original public offering price of $35 each, according to a company blog post and CNBC.
The company began trading under the ticker S with an offering of 35 million of its Class A common shares in an offering anticipated to close Friday (July 2). Underwriters have a 30-day option to buy an additional 5.250 million shares at the initial public offering (IPO) price. SentinelOne also said it would float a little more than 1.4 million at the IPO price in a private placement to some existing investors, per the blog post.
In its market debut, SentinelOne’s stock started trading at $46 per share, higher than its $35 per share IPO price, CNBC reported. The company raised $1.2 billion at an expected $8.9 billion valuation — which the news outlet said makes it the biggest public offering by a cybersecurity firm.
SentinelOne’s public offering was bigger than the $6.7 billion market debut two years ago by CrowdStrike and McAfee’s IPO years back, CNBC reported, citing data from CB Insights.
The Silicon Valley startup launched in 2013 posted revenue growth of 108 percent year over year to $37.4 million, according to the SEC filing, per CNBC. Net losses also increased to $62.6 million from 26.6 million.
“The market we address is huge,” CEO Tomer Weingarten told CNBC on Wednesday before trading began. “As you see this massive wave of digital transformation … customers are transitioning into the cloud and that creates a big opportunity for us to expand all these different footprints in the enterprise.”
SentinelOne specializes in cybersecurity tools powered by artificial intelligence (AI) on a single XDR platform that works to prevent, detect, and respond to outside infiltrations across numerous endpoints.
The cybersecurity firm amended its public offering two days ago, reflecting an increase of 32 million shares at a boosted per-share price of between $31 and $32. The lead book-running managers of the IPO were Morgan Stanley and Goldman Sachs. BofA Securities, Barclays Capital, and Wells Fargo Securities served as the active book-running managers.
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