ServiceTitan's IPO Performance

Software startup ServiceTitan has successfully priced its U.S. initial public offering at $71 per share, surpassing its previously indicated range of $65 to $67. This move is expected to raise approximately $624.8 million, valuing the company at around $6.30 billion, according to Reuters calculations.

Market Context and Company Milestones

The U.S. IPO market, which has been affected by high interest rates and market volatility for over two years, is now being 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, that 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 plans to use the proceeds from the share sale to increase capitalization and financial flexibility, as stated in its IPO filing. Previously, the company was valued at $9.5 billion after a Thoma Bravo-led funding round in 2021.

Company Profile and Competitive Landscape

Founded by Ara Mahdessian and Vahe Kuzoyan, ServiceTitan has established itself as a leading player in a niche market, providing software for over 11,800 businesses, primarily in the heating, ventilation, and air-conditioning sectors. ServiceTitan, incorporated in 2007 as LinxLogic and renamed in 2014, competes with industry giants such as Salesforce, SAP, and Jobber.

Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup are leading a 14-firm underwriting syndicate for the IPO, reflecting the strong institutional support for ServiceTitan's growth trajectory.