SailPoint Raises $1.38 Billion in Nasdaq IPO Debut

SailPoint returns to Nasdaq with a $1.38 billion IPO, fueling growth in the 2025 tech market.

SailPoint (SAIL), an identity management and cybersecurity firm, is poised to return to the public markets in an IPO listing on the Nasdaq this Thursday. The firm has priced its initial public offering (IPO) between $21 and $23 a share, raising proceeds of $1.38 billion. SailPoint's valuation prior to the IPO is at $12.6 billion, compared to its nearest competitor, Okta (OKTA), valued at $16.8 billion.

Established in 2005, SailPoint has come a long way since its initial IPO in 2017, supported by private equity group Thoma Bravo. Having gone private in 2022 for $6.9 billion, SailPoint transitioned to software-as-a-service (SaaS) model. Currently, the company projects $875 million to $877 million in annual recurring revenue for the period ending January 31, 2025, up 41% year over year.

In spite of posting losses, the non-GAAP profits of SailPoint indicate healthy financials. SailPoint had a net loss of $235.8 million during the nine months ended October 31, 2024, which is better than last year's loss of $308 million.

Post-IPO, Thoma Bravo will maintain substantial control, holding 88% of the firm and making the ultimate call on board-level matters. SailPoint's return to public markets is a test case for the 2025 IPO market as analysts forecast a robust year for tech IPOs, including possible debuts by firms such as Stripe.

2024 saw new IPO activity with 176 US companies raising $33 billion, a 38% increase in IPOs compared to the previous year. This is setting 2025 is up for a good future with investors eyeing more expansion and IPO success despite potentially more business-friendly regulation.